Bitcoin and Ethereum’s price rally follows $6 billion in new stablecoin issuance, signaling renewed market optimism.
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Bitcoin and Ethereum staged a strong rebound this week as fresh capital returned to crypto markets following the US–China tariff shock.
Bitcoin surged past $110,000 for the first time since early October, reaching roughly $111,000 as of press time, according to CryptoSlate data. The move marks a 4% daily gain and reverses some of the losses that followed President Donald Trump’s announcement of new tariffs on Chinese imports.
Ethereum also broke through the $4,000 barrier for the first time in weeks, up more than 4% to around $4,045, a level that traders view as technically significant.
Notably, other major digital assets joined the market momentume with their own rally.
According to CryptoSlate’s data, BNB, XRP, Solana, Dogecoin, Tron, and Cardano each climbed between 5% and 8%, signaling a broad-based resurgence rather than a Bitcoin-only bounce.
The current uplift can be linked to the current “buy the dip” sentiments pervading the market.
Notably, on-chain data tracked by blockchain analysis platform Lookonchain indicates that more than $6 billion in new Tether’s USDT and Circle’s USDC stablecoins have entered circulation since last week.
Stablecoin issuance often precedes renewed spot buying activities. In this case, capital appears to be rotating from cash sidelines into dollar-pegged tokens to fund token accumulation.
Meanwhile, the sentiment mirrors trends in traditional markets.
Data from The Kobeissi Letter, citing Bank of America, show that US equity investors bought $3.9 billion in stocks last week after three consecutive weeks of outflows.
Analysts at the firm pointed out that net inflows to single stocks hit $4.1 billion, the fifth-highest since 2008 and the largest on record for a week when the S&P 500 fell at least 1%.
They added:
“This was driven by institutional inflows of +$4.4 billion, the most since November 2022. Retail investors bought +$1.1 billion, marking their 2nd weekly purchase out of the last 6.”
Despite the uptick, Bitwise’s Cryptoasset Sentiment Index still signals a broadly bearish posture, with readings consistent with what analysts call a “high-risk, high-reward” setup for Bitcoin.
However, the asset manager’s intraday sentiment model now shows a bullish divergence forming, which is an early sign of a short-term reversal.
Analysts at Galaxy Research echoed this cautiously optimistic tone, writing that while last week’s flash crash “put a meaningful dent in asset prices,” the broader setup “remains constructive.”
They wrote:
“Bitcoin remains well positioned as digital gold to capitalize on fundamental doubt about government fiscal and monetary prudence, while the rise of tokenization and stablecoins coupled with an extremely favorable U.S. regulatory outlook should buoy the prospects of other important digital assets like ETH and SOL.”
At the time of press 11:13 am UTC on Oct. 20, 2025, Bitcoin is ranked #1 by market cap and the price is up 3.33% over the past 24 hours. Bitcoin has a market capitalization of $2.21 trillion with a 24-hour trading volume of $60.05 billion. Learn more about Bitcoin ›
At the time of press 11:13 am UTC on Oct. 20, 2025, the total crypto market is valued at at $3.76 trillion with a 24-hour volume of $160.51 billion. Bitcoin dominance is currently at 58.82%. Learn more about the crypto market ›
Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
Also known as “Akiba,” Liam Wright is the Editor-in-Chief at CryptoSlate and host of the SlateCast. He believes that decentralized technology has the potential to make widespread positive change.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source.
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
USDC is a fully reserved stablecoin pegged 1:1 to the US dollar, issued by Circle Internet Financial Ltd.
Launched in 2014, Tether is a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.
Dogecoin is a cryptocurrency created in December 2013 as a joke by software engineers Billy Markus and Jackson Palmer.
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
Circle is a global financial technology firm specializing in digital currency innovation and open financial infrastructure.
Bitwise Asset Management pioneered the first cryptocurrency index fund and is the leading provider of rules-based exposure to the cryptoasset space..
Galaxy (TSX: GLXY) is a digital asset and blockchain leader providing access to the growing digital economy.
Donald John Trump, born on June 14, 1946, in Queens, New York City, is a prominent American politician, businessman, and media personality.
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