Bitcoin News Update: Institutional Investors Fuel Bitcoin Surge Amid Fed Policy Triggering Both Optimistic and Cautious Market Positions

Bitcoin Encounters Challenges as Federal Reserve Actions and Market Swings Influence Forecasts

The direction of Bitcoin’s price remains a focal point as the Federal Reserve gets ready to announce its latest interest rate decision. Experts are divided on whether this will spark a price surge or heighten short-term instability. Currently, Bitcoin is valued around $114,000, with leveraged trading positions climbing and open interest hitting $37.6 billion just before the Fed’s October 29 meeting, according to an

. Market expectations suggest a 96.7% chance of a 25-basis-point rate reduction, which may benefit riskier assets such as and , as indicated by a . On the other hand, skeptics like economist and Euro Pacific Capital CEO Peter Schiff continue to call Bitcoin a speculative bubble, dismissing it as “fool’s gold” rather than a true store of value.

Anticipation of a policy shift by the Fed has already sparked a psychological rebound for Bitcoin, which recently recovered from a mid-October drop below $104,000. Institutional investments have been a key driver, with spot Bitcoin ETFs drawing $3.5 billion in new funds this month alone, according to an

. This influx has pushed institutional ownership to 12% of all Bitcoin in circulation, marking a record level. Analysts attribute the rally to factors such as moderating inflation, easing tensions between the U.S. and China, and the Fed’s shift toward a more supportive monetary stance, as noted in the Investing.com analysis.

Forecasts for Bitcoin’s price remain mixed. Optimists continue to promote a “buy the dip” approach, with some predicting a rise toward $120,000 if the Fed signals additional rate cuts, according to TradingView. Scenario planning points to two main outcomes: a short-term pullback toward $104,000 if the Fed adopts a more aggressive tone, or a renewed upward move if the central bank appears dovish, as TradingView analysis suggests. Meanwhile, BlackRock’s Larry Fink has described Bitcoin and gold as “assets of fear,” highlighting their appeal as safe havens during economic uncertainty, according to a

.

The Fed’s choice to end its three-year Quantitative Tightening (QT) program and reinvest maturing securities into short-term Treasury bills has introduced further complexity. While intended to boost market liquidity, past events—such as Bitcoin’s 35% decline after the 2019 QT conclusion—have prompted caution, according to a

. Technical experts also caution about a possible bearish MACD crossover, a pattern that preceded a 69% correction in 2021-2022.

Despite the cautious outlook from some, prominent voices like MicroStrategy’s Michael Saylor and financial writer Robert Kiyosaki remain optimistic. Saylor projects Bitcoin could reach $150,000 by the end of the year, with a long-term goal of $1 million per coin, as reported in an

. Kiyosaki, citing Bitcoin’s limited supply, expects the price to approach $200,000 by Christmas, according to the INKL article. Their positive outlook is supported by increasing institutional involvement and the narrative of Bitcoin as a safeguard against the erosion of fiat currency value, as highlighted in the Investing.com analysis.

The cryptocurrency sector is also undergoing transformation beyond price movements. Firms like Riot Platforms are shifting focus from Bitcoin mining to developing data centers, viewing mining as a step toward building robust power infrastructure, according to a

. This move reflects a broader trend of miners diversifying into artificial intelligence and advanced computing, as noted in a separate .

With the Federal Reserve’s policy decision approaching, Bitcoin’s future will depend on how macroeconomic indicators, institutional activity, and overall market mood interact. As leverage-driven swings and differing expert views persist, the next few weeks will reveal whether Bitcoin can maintain its momentum or faces a significant pullback.