Bitcoin rises 2.5%, retakes $111,000, pushing crypto stocks higher as markets steady after October sell-off
Bitcoin jumped about 2.5% on Monday to reclaim roughly $111,000, nudging crypto-related equities upward after a turbulent October. The lift suggested traders were treating the recent pullback as a temporary wobble rather than the start of a fresh downtrend. Markets showed a lighter tone into the afternoon as investors reassessed positions.
“Bitcoin is currently in a re-accumulation phase following its short-term correction, with market sentiment stabilizing and institutional demand remaining resilient,” Linh Tran, market analyst at online broker XS.com, wrote on Monday.
MicroStrategy stock climbed more than 4% after the company disclosed it bought 168 bitcoins at an average price of $112,051 between Oct. 13 and Oct. 19. The firm’s regulatory filing showed it now holds a total of 640,418 bitcoins with an aggregate purchase price of $47.4 billion.
Trading platforms reacted as well, with Robinhood jumping nearly 5% and Coinbase gaining about 3.5%, while Circle, the stablecoin issuer, was up roughly 3.5% on renewed momentum in the digital asset complex. The move reflected spillover buying into both exchanges and service providers.
Stocks moving on the rebound included MicroStrategy, Robinhood, Coinbase, Circle, MARA, Bit Digital and Cipher Mining. Sector momentum was broad but concentrated in names tied to exchanges and mining.
Miners and infrastructure names saw the biggest swings because they benefit directly from higher coin prices and rising demand for computing capacity. MARA, which has been expanding into high-performance computing and AI data centers, rose about 11%, Bit Digital climbed close to 20%, and Cipher Mining rallied around 10%.
Movements were visible across crypto-related stocks on Oct. 20 at 11:00 a.m. ET. Volume picked up as the market reacted to both corporate buys and macro signals.
A dose of regulatory optimism helped, too, after reports that Japanese financial authorities are considering rules that would allow banks to hold bitcoin and other cryptocurrencies. Any formal change would mark a step toward broader institutional acceptance in a major market.
Ethereum also recovered ground, with ether bouncing back above the $4,000 level after dipping to roughly $3,700 the prior week. That helped lift sentiment across several altcoins.
BlackRock’s head of digital assets, Robert Mitchnick, blamed the recent mini-crash and sharp sell-off in other digital assets on highly leveraged speculative trading, especially on offshore futures exchanges. Less than 2% of total bitcoin ownership is represented by the futures contracts held in these offshore exchanges, though they account for the majority of daily trading volume, Mitchnick noted.
“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,” Mitchnick said. Investors watching order flow and funding rates will be looking to see whether long-term holders keep buying through the choppy periods.
Institutional flows and corporate treasuries have played a role in dampening volatility, with larger holders seen as a stabilizing presence when spot prices wobble. That background of steady demand helps explain why sellers found limited room to push prices much lower in the recent dip.
Still, the market is thin in places and a handful of leveraged positions can push prices around quickly, which is why funding rates and futures volumes remain important to watch. Traders and risk managers are paying close attention to where margin calls could amplify moves.
Traders will keep an eye on whether buyers defend the $110k-$112k area and whether Tokyo’s regulators move from discussion to action. A shift in policy there could change flows into the market.
If banks are cleared to custody crypto, it could shift trading patterns and pension or institutional portfolios might adjust their allocations.
