Bitcoin News Today: Bitcoin Faces $116k Challenge as Bulls Grapple with Economic and Market Ambiguities

Bitcoin is currently trading around $113,125, as market participants weigh conflicting signals from both bullish and bearish perspectives. Investors are keeping a close eye on the Federal Reserve’s upcoming interest rate announcement and ongoing trade discussions between the U.S. and China, which are expected to be significant market drivers. Although Bitcoin has bounced back after a steep decline in October, it continues to encounter strong resistance at the $116,000 mark, where substantial sell orders have consistently blocked upward movement, according to the

. Over the past 12 hours, short position liquidations have surpassed $49 million, highlighting the market’s vulnerability, as reported by . Experts point to $107,800 as a vital support level; a drop below this threshold could challenge the prevailing bullish outlook, the Economic Times noted.

Interest from institutional investors in

remains strong, especially as spot ETFs for leading cryptocurrencies such as , , and have gained momentum following approval from the U.S. Securities and Exchange Commission (SEC), the Economic Times reported. Global investments into Bitcoin-related products jumped by $931 million in the week ending October 24, 2025, according to . This surge reflects increasing institutional adoption, with SpaceX’s recent $400 million Bitcoin transaction fueling speculation about Elon Musk’s companies possibly restructuring their assets, as mentioned by .

Broader economic conditions are adding further complexity to the situation. The Federal Reserve is seen as having a 98.3% chance of reducing rates by 25 basis points in October, which has lifted sentiment in the crypto sector, according to a TradingView update, though many traders are still waiting for the official decision. At the same time, the Bank of Canada has lowered its 2025 growth projection from 1.8% to 1.2%, attributing the downgrade to uncertainties in U.S. trade policy that are dampening global demand, as reported by

. These economic challenges highlight the fragile balance between Bitcoin’s speculative nature and broader financial realities.

Geopolitical events are also in focus. The upcoming trade discussions between U.S. President Donald Trump and Chinese President Xi Jinping could influence investor confidence, with positive developments potentially sparking renewed bullish activity, according to CryptoDnes. However, analysts warn that if trade disputes remain unresolved, both stock and crypto markets could experience significant declines, as noted by CryptoDnes.

Bitcoin’s future direction depends on its ability to surpass the $116,000 resistance level, which has remained a barrier despite increased institutional investment and ETF interest, the Economic Times observed. While retail investors are continuing to buy on price dips, larger market players are taking advantage of rallies to reduce their holdings, as reported by CryptoDnes. For now, Bitcoin is trading within a range of $110,000 to $116,000, with traders awaiting clarity following the Federal Reserve’s decision.