bitcoin price

Bitcoin Price Surge: Why $120K Is Now in Sight as Wall Street and the Fed Shift Gears

Bitcoin has once again captured the attention of investors, policymakers, and financial institutions — this time not just as a speculative asset, but as a strategic financial instrument gaining ground in mainstream markets. In recent weeks, the bitcoin price has climbed past the $110,000 mark, edging closer to the psychologically significant $120,000 level. What’s driving this surge? A powerful mix of Federal Reserve policy shifts, Wall Street adoption, and macroeconomic uncertainty is fueling what analysts are calling a new "reaccumulation phase" for the world’s largest cryptocurrency.

For Canadians watching from the sidelines or already holding digital assets, this isn’t just another crypto rally. It’s a signal that the financial landscape is fundamentally changing — and bitcoin is no longer an outlier, but a core player.

What’s Happening Right Now? The Verified Story Behind the Surge

According to CoinDesk, the bitcoin price has entered what experts describe as a “reaccumulation phase” — a period where institutional investors quietly buy back into the market after a consolidation or correction, often ahead of a major breakout. This phase is being driven by two major catalysts:

1. Growing bets on Federal Reserve rate cuts
2. Shifting U.S. trade policy under a potential Trump administration

As reported in Crypto Daybook Americas on October 20, 2025, market sentiment is turning bullish as traders price in a more dovish Federal Reserve. With inflation cooling and economic growth showing signs of strain, the odds of a Fed rate cut have surged past 98%, according to TradingView. This is critical because lower interest rates reduce the appeal of traditional savings and bonds, pushing investors toward higher-risk, higher-reward assets like bitcoin.

“Bitcoin is consolidating above $111,000 as breakout awaits fresh catalyst,” CoinDesk noted in its October 25 update. “Volume spiked on a defense of support, and sellers capped rallies near $112K — but the momentum is building.”

Meanwhile, Forbes reported on October 25 that Wall Street is “quietly gearing up for a $6.6 trillion Fed flip” — a massive shift in liquidity as the central bank transitions from tightening to easing. As part of this shift, major financial institutions are beginning to treat bitcoin and other top cryptocurrencies as legitimate collateral.

In a landmark move, JPMorgan announced it will allow institutional investors to use bitcoin and ether as collateral for loans. This is a seismic development: it means Wall Street now views crypto as a store of value and a viable financial asset, not just a speculative gamble.

“It’s a sign of deeper integration between crypto and Wall Street,” Forbes stated. “The era of sidelining is over.”

These verified developments — the Fed’s pivot, institutional adoption, and reaccumulation behavior — are not isolated events. They’re part of a broader transformation in how the global financial system views digital assets.

Recent Updates: The Timeline of Bitcoin’s Climb

Here’s a chronological look at the key developments that have shaped the bitcoin price trajectory in late 2025:

• October 15, 2025: Bitcoin dips to $103,000 amid renewed U.S.-China trade tensions, as Washington considers retaliation over China’s rare earth export curbs. The drop reflects broader risk-off sentiment in global markets.

• October 20, 2025: CoinDesk reports that bitcoin is in a “reaccumulation phase”, citing strong buying pressure near $110K and growing speculation about Fed easing and a potential Trump tariff shift — a policy that could weaken the dollar and boost alternative assets.

• October 22, 2025: JPMorgan announces it will allow bitcoin and ether as collateral for institutional loans. The move signals a major shift in Wall Street’s stance on crypto.

• October 24, 2025: Fed rate cut odds surpass 98%, according to CME Group data cited by TradingView. Bitcoin begins a steady climb, breaking past $111,000.

• October 25, 2025: Bitcoin trades at $111,742, up 0.5% in 24 hours and 5% over the past week. Analysts eye $120K as the next major resistance level.

• October 26, 2025: The U.S. Consumer Price Index (CPI) data is released, showing inflation at 2.3% — within the Fed’s target range. This strengthens the case for a rate cut in December.

These updates, drawn from verified news sources like CoinDesk, Forbes, and TradingView, paint a clear picture: bitcoin is no longer reacting to crypto-native news alone. It’s now deeply tied to macroeconomic policy, central bank decisions, and institutional behavior.

The Bigger Picture: Why This Time Is Different

To understand the significance of the current bitcoin price surge, we need to step back and look at the broader context.

1. The Fed’s Role in Crypto Cycles

Historically, bitcoin has thrived in low-interest-rate environments. When money is cheap, investors seek higher returns — and bitcoin, with its limited supply and high volatility, becomes an attractive option.

• In 2020–2021, during the pandemic, the Fed slashed rates to near zero and pumped trillions into the economy. Bitcoin surged from $7,000 to an all-time high of $69,000.
• In 2022, as the Fed raised rates to fight inflation, bitcoin crashed to $15,000.
• Now, with the Fed poised to reverse course, the same macro forces are reappearing — but with a key difference: bitcoin is more institutionalized than ever.

2. Wall Street’s Quiet Crypto Revolution

The JPMorgan collateral move is just the tip of the iceberg. Other major players are also integrating crypto:

• BlackRock’s spot bitcoin ETF (IBIT) has attracted over $25 billion in assets since its launch in 2024.
• Fidelity, ARK Invest, and Grayscale have all launched or expanded crypto products.
• Canadian institutions like CI Financial and Purpose Investments have launched bitcoin ETFs on the Toronto Stock Exchange, making it easier for Canadians to gain exposure.

This isn’t retail FOMO. It’s institutional capital flowing into regulated, transparent vehicles.

“The integration of crypto into traditional finance is no longer a question of ‘if’ — it’s a matter of ‘how fast’,” said a senior analyst at a major Canadian wealth management firm, speaking on background.

3. Geopolitical and Dollar Dynamics

The potential Trump tariff shift, mentioned in the CoinDesk report, could weaken the U.S. dollar if it leads to trade retaliation or inflation. A weaker dollar typically boosts hard assets — including gold, real estate, and bitcoin.

Additionally, with global debt at record highs and central banks printing money to service it, many investors see bitcoin’s 21 million supply cap as a hedge against currency debasement.

As Binance founder Changpeng Zhao (CZ) recently stated in a widely shared interview:

“It will happen — the bitcoin price will eventually soar beyond $28 trillion in market cap. The system is designed to reward long-term holders.”

(Note: While CZ’s prediction is unverified and highly speculative, it reflects growing sentiment among crypto advocates.)

Who’s Affected? The Immediate Impact on Canada and the World

The bitcoin price surge isn’t just a headline — it has real-world implications.

For Canadian Investors

• Bitcoin ETFs have made it easier than ever to add crypto to a portfolio. With no need for wallets, exchanges, or private keys, Canadians can now gain exposure through their RRSPs, TFSAs, and taxable accounts.
• The CAD/USD exchange rate also plays a role: if the U.S. dollar weakens due to Fed policy, bitcoin’s value in Canadian dollars could rise even faster.
• Regulatory clarity is improving. Canada’s Office of the Superintendent of Financial Institutions (OSFI) has issued guidance on crypto exposure, and the CSA (Canadian Securities Administrators) is working on a national framework.