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Cryptopolitan 2025-10-20 21:10:33

Bitcoin bounces back to $111,000, ending a two-week slump and lifting crypto stocks

Bitcoin climbed back to $111,000 on Monday, putting an end to a rough two-week stretch that had traders on edge. The rebound pushed up crypto-related stocks across the board, calming fears that October’s pullback was the start of a deeper correction. Market analyst Linh Tran from XS.com said, “Bitcoin is currently in a re-accumulation phase following its short-term correction, with market sentiment stabilizing and institutional demand remaining resilient.” The rally gave a lift to companies most tied to the token’s price. Strategy (MSTR) jumped more than 2% after revealing a new purchase of 168 bitcoins between October 13 and 19, at an average cost of $112,051 each. As Cryptopolitan reported, Monday’s SEC filing confirmed that the company now holds a total of 640,418 bitcoins, bought for roughly $47.4 billion in aggregate. The announcement triggered a short burst of optimism among crypto equity traders, many of whom were watching how institutions would react to last week’s price wobble. Crypto stocks and miners gain momentum Trading platforms also had a strong day. Robinhood (HOOD) climbed by 4.5%, while Coinbase (COIN) rose by 2.5%, tracking the rebound in overall crypto market sentiment. Circle (CRCL), the stablecoin issuer, surged by 3.5%, according to data from Yahoo Finance. Crypto mining firms rallied as well, boosted by Bitcoin’s recovery and growing use of their infrastructure for AI and high-performance computing (HPC) workloads. MARA Holdings (MARA), which has expanded into HPC data centers, jumped by 6%. Bit Digital (BTBT) surged by 15%, while Cipher Mining (CIFR) climbed by 6%. Analysts said miners’ diversification into AI hosting and compute services has kept them cushioned even when Bitcoin cools off, but Monday’s rally showed that price still rules sentiment in the sector. Adding to the mood change was a report from Japan’s Financial Services Agency, which said it was considering allowing domestic banks to hold Bitcoin and other cryptocurrencies directly. Meanwhile, Ether (ETH) followed suit, reclaiming the $4,000 level after briefly slipping to $3,700 last week. The synchronized bounce across assets showed that the correction phase might be fading faster than expected, at least for now. Rob Mitchnick, BlackRock’s head of digital assets, said that last week’s brief “mini-crash” in Bitcoin and the accompanying sell-off across altcoins came mostly from highly leveraged speculative trading on offshore futures exchanges. He said that while those derivatives platforms represent less than 2% of Bitcoin’s total ownership, they still account for most of the daily trading volume, making them a source of short-term volatility. Rob added , “Over time, the more sophisticated sort of long-term buy-and-hold-type investing activity takes over and predominates, but not with that short-term noise.” His comments are similar to what many market veterans have observed lately: institutional players tend to stay calm during dips, while overleveraged retail traders panic first. Get $50 free to trade crypto when you sign up to Bybit now

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