Bitcoin Reclaims $111,000 After 3-Day Recovery Streak

Bitcoin rose 3.9% to $111,048, recovering key psychological support at $110K following last week’s sharp correction.

The total crypto market cap rebounded 3% to $3.66 trillion, retracing a portion of losses from the $500 billion liquidation event earlier in October.

Improved macro sentiment and anticipation of a Federal Reserve rate cut continue to fuel confidence across major assets.

MicroStrategy Expands Holdings to 640,418 BTC

MicroStrategy announced the purchase of 168 BTC (≈$18.8M) between October 13–19 at an average price of $112,051 per coin, bringing its total holdings to 640,418 BTC, worth approximately $71.1 billion.

The news boosted MSTR stock by 4%, reinforcing the company’s position as the largest corporate holder of Bitcoin and further bolstering investor sentiment in the broader crypto market.

Ethereum Tops $4,000, Targets $4,250 Resistance

Ethereum climbed 4.2% to $4,063, reclaiming the $4K mark for the first time since the mid-October sell-off.

Analysts highlight $4,250 as the next resistance to watch, noting that sustained strength could open a path toward $5,000 by year-end amid growing demand for ETH ETFs and L2 ecosystem expansion.

Crypto Mining Stocks Surge on AI Integration

Bitcoin mining companies continued their strong rally as they diversify into AI and high-performance computing services:

  • Marathon Digital (MARA) +11%

  • Bit Digital (BTBT) +20%

  • Cipher Mining (CIFR) +10%

This trend reflects a broader pivot among miners seeking new revenue streams as block rewards decrease and AI workloads rise in profitability.

Fed Rate Cut Bets Boost Risk Assets

The CME FedWatch Tool shows a 98.9% probability of a 25bps rate cut at the October 29 FOMC meeting.

Fed Chair Jerome Powell’s acknowledgment of labor market softening and improving U.S.–China trade dialogue supported a rebound in both equities and crypto markets.

ETF Outflows Persist Despite Price Recovery

Despite improving prices, crypto ETFs saw $599 million in net outflows, with Bitcoin ETFs losing $366.59 million and Ethereum ETFs shedding $232.4 million.

Analysts note that institutional caution remains, as many funds reduce exposure ahead of CPI data and earnings season volatility.

Market Takeaway:

Bitcoin’s return above $110K restores short-term technical confidence, but ETF outflows suggest institutions are still risk-averse.

If the Fed follows through with a rate cut, liquidity should return strongly to crypto markets in late Q4, potentially setting the stage for another BTC and ETH rally.