Bitcoin Updates: Federal Reserve's Quiet QE and Institutional Moves Drive Bitcoin Toward $140K Even Amid Pullbacks

Bitcoin has fallen below the $100,000 mark, but leading voices such as BitMEX co-founder Arthur Hayes and Bitwise’s CIO remain optimistic, pointing to fundamental market changes and possible monetary policy shifts. Even with the recent decline, experts believe that increased institutional involvement, growth in mining capacity, and the prospect of a "stealth quantitative easing" (QE) could drive Bitcoin toward $140,000 or beyond before the year ends.

The digital asset’s recent lackluster performance has been linked to a slowdown in ETF investments and increased selling by long-term holders. As noted in a

, institutional buying—which was previously fueled by robust spot ETF purchases—has tapered off, with BlackRock’s ETF inflows dropping from over 10,000 BTC per week to less than 1,000 BTC in 2025. At the same time, retail activity has shrunk, with individual trading now making up only 0.48% of all transactions, down from 1.8% in 2021, according to another Coinotag report. This trend suggests the market is maturing, with institutional investors like corporate treasuries and macro-focused funds now leading demand, as highlighted in a separate Coinotag analysis.

Despite the downturn, Hayes remains positive, viewing the current phase as a setup for a stronger bullish trend. In a recent

, he claimed that the U.S. Treasury and Federal Reserve are quietly implementing a "stealth QE" via the Standing Repo Facility (SRF), which boosts market liquidity to stabilize debt markets. With the U.S. expected to issue $2 trillion in new debt each year, Hayes argues that the Fed’s balance sheet growth—disguised as standard liquidity operations—will ultimately favor Bitcoin by expanding global dollar supply, a perspective also discussed in a CoinEdition article.

This argument is gaining support as Bitcoin’s infrastructure becomes more robust. Mining operations are expanding, with the network’s hashrate reaching an all-time high of 5.96 million ASICs in operation. BitMEX’s Ju described this as a “strong long-term bullish indicator,” noting that the rising hashrate signals increasing trust in Bitcoin as a “store of value,” as reported by Cointelegraph. Furthermore, corporate interest is rising, with companies like MicroStrategy adding Bitcoin to their reserves, and ETFs absorbing demand that once came from retail traders, as previously mentioned in the Coinotag analysis.

Nonetheless, some risks remain. ETF inflows have not yet recovered, and global tensions—including tariffs from the Trump administration—could slow a rebound. Still, Bitfinex analysts believe that a mix of Federal Reserve rate cuts, renewed ETF interest, and seasonal strength in the fourth quarter could propel Bitcoin to $140,000 by November, according to Cointelegraph. On-chain metrics also show that long-term holders are still in profit, with Bitcoin’s average acquisition price at $55,900 and unrealized gains near 93%, as detailed in the Coinotag analysis.

As the market looks for new drivers, Hayes and others stress the significance of liquidity cycles. “A sharp recovery is likely once ‘stealth QE’ takes effect,” he wrote in a

, forecasting that the Fed’s indirect stimulus could spark the next bull run. For now, investors are treading carefully but remain hopeful, closely watching institutional activity and central bank moves for clues about the next major trend.