Bitcoin Bulls Are Back: What’s Needed for a Rally to $120,000
Bitcoin (BTC) has reclaimed the $114,000 mark, recouping part of the losses from the previous week, despite heavy outflows from spot Bitcoin exchange-traded funds (ETFs). This rebound has prompted investors to question whether the rally is sustainable and what catalysts might drive Bitcoin toward the $120,000 level. Roughly $900 million flowed out of US-listed spot Bitcoin ETFs last week, sparking moderate concern among traders, especially as long-term whales sold 3.4 million BTC.
According to Glassnode, about 90% of the coins moved showed profit-taking for the third time in this cycle, increasing the likelihood of “a cooling phase ahead.” The spot Bitcoin ETFs daily net flows, USD, are shown in the graph below. 
Key Events That Could Shift Investor Sentiment
Three events scheduled for this week could shift investor sentiment toward Bitcoin. The first is a joint roundtable on digital asset regulation hosted by the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). SEC Chair Paul Atkins is set to open the event, which aims to bring greater regulatory clarity to jurisdictional tests, listings, and exchange oversight. Panelists include Jeff Sprecher, CEO of ICE-NYSE, Adena Friedman, CEO of Nasdaq, and Terry Duffy, CEO of CME Group, along with executives from leading crypto-focused firms and representatives from JPMorgan, Bank of America, and Citadel.
Another potential catalyst for Bitcoin’s price is the looming risk of a US government shutdown on Oct. 1. US President Donald Trump has scheduled a meeting with congressional leaders to try to avert the crisis. Without action from Congress, thousands of federal employees could be furloughed, and numerous services, including small-business grant programs, would be disrupted. Bitcoin’s price has historically reacted negatively when traders become more risk-averse.
Labor Market Data and Strategic Bitcoin Reserve Expectations
The next major factor that could unlock a Bitcoin rally to $120,000 is the US job market data, the Federal Reserve’s top focus following core inflation that matched market expectations at 2.9% in August. The US Bureau of Labor Statistics is scheduled to release the JOLTS survey of job openings, followed by the nonfarm payroll report. Signs of weakness in the labor market could steer investors toward assets viewed as safer, such as gold and short-term government bonds.
Another reason Bitcoin has managed to hold the $109,000 level is optimism surrounding plans for a United States Strategic Bitcoin Reserve. Jan3 founder Samson Mow recently noted that the Trump administration is “pushing forward” budget-neutral strategies to acquire Bitcoin. Some analysts also highlight the possibility of a reevaluation of the US Treasury’s gold reserves. 
Key drivers that could push Bitcoin above $120,000 include clearer regulation across the digital asset industry, a temporary agreement to avert a looming US government shutdown, and reduced risks reflected in upcoming US job market data. Meanwhile, even the possibility of the US Treasury adding Bitcoin to its reserves provides a psychological support level for the market if those broader events turn unfavorable. For more information, visit the original source link: https://cointelegraph.com/news/bitcoin-bulls-are-back-here-s-what-is-needed-for-a-rally-to-120k?utm_source=rss_feed&utm_medium=rss_tag_bitcoin&utm_campaign=rss_partner_inbound
