Bitcoin at a Crossroads: Fed’s Balance Sheet Shift Sparks Bullish Debate
As the Federal Reserve signals an end to quantitative tightening, Bitcoin stands at a pivotal liquidity inflection point. Market analysts are split on whether this shift will fuel a new crypto bull run or mirror the prolonged consolidation seen in 2019. With Chair Jerome Powell's recent remarks hinting at a historically bullish development for risk assets, the cryptocurrency community watches closely for Bitcoin's next major move.
Bitcoin Braces for Fed Balance-Sheet Shift as Liquidity Cycle Turns
The Federal Reserve's decision to halt quantitative tightening has placed Bitcoin at a critical liquidity inflection point. Market participants are divided on whether this pivot will reignite the crypto bull run or echo the 2019 post-policy slump that saw prolonged consolidation.
Chair Jerome Powell's recent remarks signal an end to balance sheet reduction—a historically bullish development for risk assets. Yet the current macroeconomic landscape, characterized by elevated interest rates and institutional participation, suggests this cycle may diverge from past patterns.
Analysts observe that while initial volatility often accompanies such transitions, capital typically migrates toward higher-yielding investments as easing progresses. "ETF flows reflect cautious optimism," noted Delta Exchange's Riya Sehgal, highlighting tempered expectations for additional rate cuts despite the recent 25bps reduction.
Bitcoin Rebounds as U.S.-China Trade Deal Eases Market Tensions
Bitcoin surged past $110,000 following President Donald Trump's announcement of a one-year trade agreement with China. The deal, focused on rare earths and critical minerals, includes tariff reductions and eased export restrictions on semiconductors. Market Optimism fueled a V-shaped recovery in BTC, with global equities also rebounding.
Trump described negotiations with Chinese President Xi Jinping as "amazing," confirming mutual visits in 2026 to reinforce cooperation. The U.S. will cut average tariffs on Chinese goods from 57% to 47% and reduce fentanyl-related tariffs to 10%. This diplomatic thaw reversed weeks of crypto and equity market volatility.
Bitcoin (BTC) Experiences Volatility Amidst Market Turbulence and Upcoming Options Expiry
Bitcoin's price oscillated between $108,000 and $111,000 as market turbulence and a significant crypto options expiry on October 31, 2025, fueled volatility. The Federal Open Market Committee's recent 25 basis point rate cut and ETF outflows exceeding $470 million intensified pressure, with Fidelity's FBTC leading the sell-off.
Liquidations surpassed $821 million in 24 hours, including $368 million in Bitcoin long positions. Exchanges like Binance, Bybit, and Hyperliquid recorded the highest volumes. Market participants now watch for potential stabilization post-expiry as macro conditions evolve.
Australia's ASIC Updates Crypto Asset Rules, Shifts Terminology to 'Digital Assets'
Australia's financial regulator, the Australian Securities and Investments Commission (ASIC), has introduced significant updates to its crypto regulatory framework. The new guidance clarifies how digital assets, including Bitcoin, fit within the country's existing financial laws. This marks one of Australia's most detailed efforts to bring legal clarity to its rapidly growing crypto market.
ASIC's latest draft update to Information Sheet 225 reflects a strategic shift from the term 'crypto assets' to 'digital assets.' This change acknowledges the sector's expanding diversity, encompassing tokens, staking programs, tokenized products, and wrapped assets. The regulatory body emphasizes that many crypto-related products already fall under existing regulations outlined in the Corporations Act 2001.
The update includes 13 new scenarios clarifying when tokens and staking programs qualify as financial products, requiring firms to obtain an Australian Financial Services (AFS) license. By providing concrete examples, ASIC aims to reduce uncertainty for companies struggling to interpret current laws. This MOVE precedes anticipated broader reforms from the Treasury.
Bitcoin Whitepaper Turns 17
Seventeen years after its release, the bitcoin whitepaper remains a cornerstone of decentralized finance. Satoshi Nakamoto's nine-page document, published on October 31, 2008, introduced a peer-to-peer electronic cash system that bypassed traditional financial intermediaries.
Bitcoin has evolved from an obscure cryptographic experiment to a global financial phenomenon. The network's trustless architecture and fixed monetary policy have challenged conventional notions of money, inspiring thousands of derivative projects and sparking institutional adoption.
The asset's journey reflects broader shifts in financial technology - from early cypherpunk ideals to mainstream recognition as 'digital gold.' Market cycles have tested its resilience, yet Bitcoin continues to demonstrate antifragility through network hash rate growth and increasing on-chain activity.
Coinbase Posts $433M Q3 Profit Amid Crypto Market Resurgence
Coinbase Global Inc. reported a staggering $433 million net income for Q3 2025, marking its most profitable quarter since 2021's crypto boom. The exchange's transaction revenue nearly doubled year-over-year to $1.05 billion as spot trading volumes surged 38% sequentially.
The platform significantly bolstered its Bitcoin reserves, adding $299 million worth of BTC to push total assets under custody above $31 billion. This performance reflects renewed institutional interest and retail trader activity following months of market dormancy.
Analysts attribute the explosive growth to heightened volatility across digital assets, particularly Bitcoin, which drove traders back to centralized platforms. 'When markets move, they move through Coinbase,' said one industry observer, noting the exchange's position as a bellwether for crypto adoption.
