Bitcoin Holds $86K as AI Tokens Rally and Fed Hike Bets Ease

Bitcoin (BTC) maintained its position above $86,000 on Monday, extending its bullish momentum with a 12% gain over the past three weeks. Institutional demand remains a key driver, as BTC spot Exchange Traded Funds (ETFs) saw their third week of positive inflows. Additionally, easing expectations of a Federal Reserve rate hike in October, following a weaker-than-expected employment report last week, has further bolstered Bitcoin’s upward trajectory.

Meanwhile, AI-focused cryptocurrencies like Artificial Superintelligence Alliance (FET), Virtuals Protocol (VIRTUAL), and NEAR Protocol (NEAR) are leading gains over the last 24 hours. This suggests a shift in investor capital from DeFi tokens to AI-related assets. The technical outlook for these tokens indicates a strengthening momentum, favoring further upside potential.

Bitcoin is currently consolidating just above $86,000, with short-term support at $85,000 and resistance at $88,000. While Bitcoin’s rally has slowed, other major cryptocurrencies like Ethereum and XRP are continuing their recovery, albeit amid slowing ETF inflows.