Bitcoin Updates: Federal Reserve Policy Shift and Trump-Xi Friction Drive Crypto to a Pivotal Moment: Bitcoin and Ethereum Reach Critical Levels

Bitcoin surged back above $108,000 and

climbed past $3,800 as investors navigated changing macroeconomic trends, ongoing geopolitical strife, and shifting institutional strategies. The recent upswing in cryptocurrencies came after a turbulent October, sparked by U.S. President Donald Trump’s announcement of a 100% tariff on Chinese goods, which initially drove down to $104,000 before it rebounded, according to . Experts now highlight a possible "Fed pivot" as a major driver for further growth, with Federal Reserve Chair Jerome Powell indicating an end to quantitative tightening—a policy change that could inject trillions into the financial system, as outlined in . Binance founder Changpeng "CZ" Zhao has even forecasted a $28 trillion market cap for Bitcoin, citing the central bank’s anticipated return to money printing, according to the Forbes analysis.

The tariff dispute between Trump and Xi, which saw a brief pause after both leaders agreed to meet at the APEC summit, was highlighted in

. The initial shock led to $19.35 billion in liquidations, as reported by , but Bitcoin’s rebound to $111,000 and Ethereum’s surge above $4,200 demonstrate the market’s resilience, according to . More institutional investors are reallocating funds from Bitcoin to Ethereum, spurred by $9 billion in Q3 inflows to Ethereum ETFs—marking the first time surpassed BTC in quarterly demand, based on . This movement is supported by on-chain data showing whales accumulated 6.8 million ETH by October and a growing total value locked (TVL) in DeFi platforms, as noted in .

Ethereum’s technical indicators have turned positive as it remains above $3,800, with some analysts projecting a possible rise to $5,600 if support holds, according to the Yahoo analysis. Meanwhile, Bitcoin is approaching a crucial resistance at $123,000, where short sellers could face liquidations, as mentioned in

. The mixed performance in the crypto sector is also reflected in ETF flows: Bitcoin and Ethereum ETFs experienced $550 million in outflows after Powell’s hawkish remarks on October 29, according to , while new products like Grayscale’s Solana ETF attracted $1.4 million in initial investments, as reported by .

Regulatory shifts have also contributed to the positive sentiment. The SEC’s acceptance of tokenized securities and Treasury Secretary Scott Bessent’s support for stablecoins have increased market confidence, as detailed in

. Michael Saylor’s Strategy, the largest corporate holder of Bitcoin, added 390 BTC in the third quarter, while American Corporation joined the ranks of the top 26 corporate holders, according to the Yahoo report. However, risks remain, as illustrated by trader Andrew Kang’s 50% loss on a Bitcoin short during the post-crash rally, as reported in the Bitget update.

With the Federal Reserve’s next interest rate decision approaching and U.S.-China trade negotiations still uncertain, the crypto market is bracing for further volatility. As one analyst put it, “The next few weeks will reveal whether this rally marks a lasting recovery or just a brief pause,” a sentiment echoed in the Yahoo analysis.