Bitcoin Bulls Eye $83,000 as Institutional Demand Surges
Bitcoin's price has continued to rise this week, reaching near $80,000 after testing the 50-week Simple Moving Average (SMA) at $81,114. Strong institutional demand is driving this rally, with spot Bitcoin Exchange Traded Funds (ETFs) on track to record a second consecutive week of billion-dollar inflows, totaling $1.13 billion as of Thursday.
According to SoSoValue data, these ETF inflows reflect growing institutional interest in Bitcoin and support its price outlook. However, traders should be cautious as the 365-day moving average nears $83,000, a level that could determine the Crypto King's market regime.
The Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium on Friday could provide fresh clues about the bank's monetary policy and trigger volatility across risky assets such as Bitcoin. A dovish or signal of potential interest rate cuts from Warsh could support BTC, while a hawkish stance could weigh on risk assets.
US inflation data offered a mixed backdrop for Bitcoin this week, with the core Personal Consumption Expenditures (PCE) Price Index holding steady at 3.3% YoY in July. However, optimism about a potential reopening of the Strait of Hormuz amid diplomatic efforts involving Iran and Oman could ease oil-driven inflation concerns and reduce the need for further monetary tightening, supporting Bitcoin.