Bitcoin could surge due to US Fed’s surprise rate cut: analyst

According to a market expert, the US Federal Reserve cutting rates earlier than market expectations could push Bitcoin towards $112,000 once again.

“When these two further rate cuts come, if they’re coming a lot sooner than expected, that will then impact heavily on the future price moves or crypto on Bitcoin and some other cryptos as well,” Carlo Pruscino is a CMC Markets Market Analyst, and he spoke to Cointelegraph.

“The upside target that traders have in mind is $112,000 for Bitcoin, that is the psychological level,” Pruscino said.

Fed “enough data” Unknown factor is still in play

Bitcoin’s price peaked at $111,970 on May 22. However, it has now dropped to just $102,766 as of the date of this article. according CoinMarketCap is a great place to start. 

The market is confident, though, that the Fed’s upcoming June 18 decision will not affect interest rates. According According to CME’s FedWatch Tool 97.5% of respondents expect that the rate will remain between 4.25% to 4.50%.

Pruscino claimed that the Federal Reserve had “enough data” The tariffs imposed by US President Donald Trump are still causing uncertainty.

“As they’ve mentioned many times in their statements, the unknown is tariff policy and trade policy, so they need to have some clear evidence on that,” Pruscino said.

“There needs to be a continuation of risk on improved risk sentiment for $112,000 to be cracked, to push higher when you get catalysts,” He added.

US Jobs Report is a Key Indicator

US Court of International Trade blocked Trump from imposing his tariffs On May 28, Trump argued that he had overstepped his power. An appeals court permitted them to go on, however, and Trump recently Tariffs on steel and aluminium imported from abroad doubled to 50%

Pruscino noted that both Bitcoin’s price and the Fed’s interest rate reduction will depend on the US jobs report to be released June 6 by the Bureau of Labor Statistics.

Related: Lummis: Fed confirmation signals ‘brighter future for digital assets’

“Going into this number here, we’ve had some weak US activity just recently. So the number’s going to try and be strong enough to negate some of that weak activity that we’ve had,” He said.

Pruscino noted that an excellent report would delay any rate reduction by the Fed.

“If you get a large number of, say, plus 250,000 jobs, then that’ll be a slight surprise to the markets, and that will then lead the markets to think, well, perhaps the Fed Reserve may further delay their rate cuts this year,” He said.

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The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.