Bitcoin (BTC) briefly breached $116,000 for the first time in two weeks as traders positioned for a dovish Federal Reserve decision and fresh capital flowed back into digital asset products following October’s risk-off stretch.
As of press time, Bitcoin traded at $114,683.03, up 0.15% over 24 hours. The move reflects a convergence of macro tailwinds and technical dynamics that turned sentiment after mid-October weakness left the market vulnerable to short squeezes and renewed institutional demand.
Markets are pricing the Oct. 29 Fed meeting as the catalyst. Traders are betting that easier financial conditions will support risk assets.
Additionally, a softer dollar index (DXY) hovers in the high-98s, and subdued long yields near 4% on the US 10-year Treasury create the macro backdrop crypto typically needs to rally.
Lower rates reduce the opportunity cost of holding non-yielding assets and ease financial conditions broadly.
Major altcoins showed mixed performance. Ethereum traded at $4,148.13, down 0.2% over 24 hours, while Solana fell 0.1% to $199.82. XRP gained 0.1% to $2.64, and BNB rose 0.5% to $1,143.17.
Cardano dropped 1.3% to $0.6725, and Dogecoin declined 1.5% to $0.2026. The divergence suggests capital concentrated in Bitcoin rather than rotating broadly across crypto markets.
Flows reversed in digital asset products
CoinShares reported $921 million of net inflows into digital asset products for the latest weekly period.
The reversal follows cooler CPI data that revived institutional appetite after October saw sustained outflows. The shift explains why dip-buyers showed conviction this week, treating sub-$115,000 levels as entry points rather than resistance.
Derivatives markets amplified the move. Hundreds of millions in short liquidations hit over the weekend and early Oct. 27, per CoinGlass estimates, as bears were forced to exit positions when Bitcoin cleared key technical levels.
That squeeze dynamic magnifies spot demand and accelerates rallies once resistance breaks, creating the momentum that carried BTC toward $116,000.
Supply-side pressure eased at the margin. Mt. Gox’s trustee extended the creditor repayment deadline by one year to Oct. 31, 2026, removing near-term forced selling risk from an overhang that has weighed on sentiment for months.
The formal extension appeared in the trustee’s notice and reduces one variable that traders cited as a headwind.
Despite the recent tailwinds, two risks remain. The same ETF and fund cohort that bought this week were net sellers in mid-October, and Fed messaging can reverse risk sentiment quickly.
If rate-cut odds fade or the dollar rallies sharply, the macro tailwinds supporting Bitcoin can turn into headwinds just as quickly. This week’s Fed decision will test whether today’s positioning holds or unwinds.