The Fed could cause a "storm" in the market: Is Bitcoin about to return to the 112,000 USD mark?

Carlo Pruscino, a market analyst at CMC Markets, warns that any cutting down the whales move by the Federal Reserve (Fed) earlier than expected could trigger a strong bullish rally for Bitcoin, bringing the leading coin back to the psychological peak of 112,000 USD.

Pruscino stated that the crypto market is closely monitoring the monetary policy of the United States, and the Fed's unexpected rate cut will have a profound impact on the price of Bitcoin and many other cryptocurrencies.

"When the next two rounds of interest rate cuts occur, if they happen much earlier than the market's forecast, it will create a significant boost to price movements, especially for Bitcoin and some other digital assets."

Target 112,000 USD – an important psychological level

Bitcoin reached a new record high of 111,970 USD on May 22, before a slight adjustment down to 103,574 USD at the time of writing, according to data from Bitcoin Magazine. Nevertheless, Pruscino believes that the 112,000 USD level remains a bullish target that many traders are aiming for – a milestone that holds significant psychological and technical importance.

"Strong enough catalysts are needed, such as cutting down the whales or improving risk sentiment, for Bitcoin to break through the 112,000 USD threshold and establish a higher price range," he added.

! BTC Price Chart 1 Day | Source: TradingViewAccording to CME's FedWatch Tool, there is a 97.5% chance that the Fed will keep interest rates unchanged at between 4.25% and 4.5% during the upcoming policy meeting on June 18. However, Pruscino believes that the Fed has "enough data" to start adjusting interest rates, but still faces unpredictable variables, especially from US trade policy.

! Source: CME"President Donald Trump's tariffs and trade policies remain a big unknown. The Fed needs more clear evidence of the impact of these policies before acting," he said.

Recently, the U.S. International Trade Court blocked an attempt to impose tariffs on Trump, arguing that he had exceeded his jurisdiction. However, the appeals court later allowed the policy to continue, and Trump doubled tariffs on imported steel and aluminum to 50% — a move that could add to inflationary pressures and affect the Fed's monetary policy roadmap.

One factor that investors are waiting for is the employment report from the U.S. Bureau of Labor Statistics to be released on June 6. This is seen as an important indicator for both interest rate trends and the short-term trend of Bitcoin.

Pruscino stated that if the employment data shows a strong improvement, such as an increase of 250,000 jobs, it could lead the Fed to maintain a "cautious" stance, reducing the likelihood of cutting down the whales this year.

"We have seen some weak signals from the US economy recently, so this report will play a key role in reinforcing or denying that trend. A strong jobs report could be the reason the Fed delays any easing moves, thereby restraining Bitcoin's bullish momentum in the short term."

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