Bitcoin Updates: Bitcoin Matches Equities in Investment Portfolios as $30B Inflows Indicate Institutional Transition

The cryptocurrency sector is currently experiencing a consolidation phase, with Matrixport experts describing the market as "largely moving sideways" as traders remain cautious in anticipation of significant macroeconomic events. Although there has been recent price fluctuation, the outlook for digital assets over the medium term remains steady, supported by ongoing institutional investments and clearer regulatory guidelines.

Bitcoin (BTC-USD) has climbed back above $126,000 after U.S. spot

ETFs saw a record $3.55 billion in weekly inflows in early October 2025, mainly driven by BlackRock's iShares Bitcoin Trust, as reported by . Total inflows into Bitcoin investment products for 2025 have now surpassed $30.2 billion, highlighting increasing institutional trust. Publicly traded firms have also boosted their Bitcoin reserves, rising from 476,000 to 869,000 BTC this year, along with a notable increase in U.S. Spot ETF holdings, according to the TradingView report.

Nevertheless, the market remains highly reactive to macroeconomic news. A sharp downturn at the end of October—prompted by President Donald Trump's declaration of a 100% tariff on Chinese imports—resulted in $19.35 billion in liquidations and sent Bitcoin below $104,000, according to

. Analysts such as CrypNuevo have since pointed out possible support zones around $111,000 and $112,000, cautioning that Bitcoin must first address the "CME gap" at $107,000 to prevent further declines, the Yahoo Finance article stated.

Speculation has intensified ahead of the Federal Reserve's rate decision on October 29. Market participants are now factoring in a 96.7% chance of a 25-basis-point rate reduction, which could encourage risk-taking,

. According to CoinShares, digital asset funds attracted $921 million in new investments last week, fueled by hopes for lower rates and easing inflation, as reported by . While Grayscale continued to see outflows, Bitcoin ETFs such as iShares and Fidelity's Wise Origin led the surge, raising BTC's assets under management to $178.2 billion, the TradingView piece mentioned.

Regulatory shifts are also transforming the industry. The Digital Asset Market Clarity Act of 2025, which introduced a federal regulatory structure for stablecoins, has clarified the difference between digital commodities and securities,

. At the same time, Trump's suggestion of replacing Federal Reserve Chair Jerome Powell has introduced some uncertainty, though the crypto market has largely priced in the anticipated rate cut, .

Despite recent market swings, the underlying fundamentals remain strong. Institutional interest in holding Bitcoin as treasury assets has grown, with companies like Strategy and American Corporation acquiring significant amounts of BTC, as highlighted by Yahoo Finance. On-chain staking has also increased, with $400 million in BTC locked in DeFi protocols over the past ten days, indicating renewed investor confidence,

.

Matrixport's analysis highlights a market caught between caution and conviction. As traders look for direction on U.S.-China trade talks and the Federal Reserve's next moves, the expanding institutional embrace of Bitcoin and progress on regulatory fronts point to a solid medium-term outlook. As one analyst remarked, "Bitcoin is no longer just an alternative to gold—it's now directly competing with stocks as a tool for portfolio diversification," according to Yahoo Finance.