Bitcoin Surges on ETF Inflows, Technicals, and Fed Catalysts

The price of Bitcoin has stalled in recent days, but experts predict it could surge to $100,000 due to several catalysts. According to Citigroup, institutional investors will start allocating cash into alternative assets, boosting demand. Data shows that both retail and institutional investors are allocating cash to Bitcoin.

Spot Bitcoin ETFs have attracted over $6 billion in net inflows across the past three months, with IBIT holding nearly $70 billion in assets and Fidelity's FBTC holding $15.3 billion. Additionally, Michael Saylor's Strategy has restarted its Bitcoin purchases, buying 1,665 coins last week and bringing its total holdings to 847,666.

The Federal Reserve's actions may also benefit Bitcoin, as a report released this week showed that the headline and core personal consumption expenditure rose at a lower pace than expected in August. The nonfarm payrolls rose by just 29,000 last month, and the unemployment rate rose to 4.2%, meaning the Fed will not be in a hurry to hike interest rates again this year.

The daily chart shows that Bitcoin has formed some highly bullish technicals, including a break-and-retest pattern and a golden cross pattern. These patterns confirm that an asset is gaining momentum, and a breakout above the upper side of the flag will point to more gains towards $90,000, followed by the psychological level of $100,000.