Crypto market recap: Bitcoin climbs 4% this week amid Fed policy speculation

Crypto market recap: Bitcoin climbs 4% this week amid Fed policy speculation
BTC and ETH show mixed investor sentiment

​According to TradingView, Bitcoin is trading around $111,500, marking a 0.12% decline over the past 24 hours but a 4.00% increase for the week. Since the start of the year, the cryptocurrency has risen nearly 20%, and analysts estimate that a new all-time high could be reached by year-end. 

Analyst Michaël van de Poppe recently predicted that Bitcoin could hit new record levels in November, echoing broader institutional sentiment that views it as a digital alternative to gold. A sharp rise in spot ETF inflows — exceeding $446 million last week — reinforces the notion that investor confidence in Bitcoin’s long-term value is returning.

A key driver behind the renewed momentum is speculation that the U.S. Federal Reserve may soon pause or end its quantitative tightening (QT) policy. Investors appear to be positioning ahead of this shift, translating expectations of lower interest rates and a weaker dollar into stronger demand for Bitcoin — an asset that has historically performed well in such macroeconomic conditions.

BTC price dynamics. Source: TradingView

Ethereum faces pressure amid ETF outflows and altcoin weakness

In contrast, Ethereum (ETH) continues to face challenges. According to SoSoValue, Ethereum spot ETFs recorded approximately $243 million in net outflows over the past week, following $311 million in outflows the previous week. Total assets under management across Ethereum ETFs now stand at about $26 billion, while Bitcoin’s ETF ecosystem controls roughly 6.8% of its market capitalization.

These withdrawals reflect declining investor confidence in Ethereum’s short-term performance. The Crypto Fear & Greed Index has dropped to 34, while the Altcoin Season Index fell to 23, signaling waning interest in alternative crypto assets. This downturn comes despite optimistic forecasts suggesting that Ethereum could reach $5,000, with altcoins potentially doubling in value. The diverging capital flows indicate that Bitcoin continues to dominate institutional attention and capital allocation.

Trader takeaways and market outlook

For traders, Bitcoin’s current trajectory underscores its evolution from a speculative asset to a macro-driven store of value influenced by global monetary policy. With strong fundamentals and renewed inflows, it presents an appealing hedge for investors seeking resilience against inflation and currency risk.

Ethereum, meanwhile, could represent a tactical opportunity — its recent outflows may precede a potential rebound if market sentiment improves and ETF withdrawals stabilize.

Looking ahead, markets will closely watch the Federal Reserve’s policy signals, ETF flow trends, and Ethereum’s ability to restore investor trust. Should Bitcoin break above its recent highs and policy shifts materialize, both cryptocurrencies could see renewed upside momentum by the end of the year. 

Read also: Ferrari and Conio unveil 499P token for VIP clients

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