The reduction in interest rates of the American federal reserve earlier that the market provided that Bitcoin could bring back to $ 112,000, said a market analyst.
“When these two other rate drops arrive, if they arrive much earlier than expected, it will then have a strong impact on future price movements or crypto on bitcoin and other cryptos,” Carlo Prustino told CMC Market Market, Carlo Pruscino.
“The upward goal that traders have in mind are $ 112,000 for Bitcoin, that is to say the psychological level,” said Pruscino.
Fed has “enough data” but an unknown factor still at stake
On May 22, Bitcoin reached a new summit of $ 111,970, but has since fallen at $ 102,766 when writing the editorial’s time, according to CoinmarketCap.
However, market players are convinced that the Fed will hold interest rates to its next decision on June 18. According to the CME Fedwatch tool, 97.5% expect the rate between 4.25% and 4.50%.
Pruscino said the federal reserve has “enough data” to make a decision but that it is still faced with uncertainty due to the prices of US President Donald Trump.
“As they have mentioned several times in their statements, the unknown is pricing policy and commercial policy, so they must have clear evidence on this subject,” said Pruscino.
“There must be a continuation of the risk on an improved risk feeling for $ 112,000 to be cracked, to push higher when you get catalysts,” he added.
The American job report will be a key indicator
The American Court of International Trade prevented Trump from imposing his prices on May 28, arguing that he had exceeded his authority. However, a court of appeal allowed them to continue, and Trump recently doubled prices on foreign steel and aluminum at 50%.
Pruscino said that the American job report, which is expected to be published by the Bureau of Labor Statistics on June 6, will be a key indicator for the drop in interest rates of the Fed and the short -term Bitcoin action.
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“Upon entering this issue here, we have had a weak American activity recently. So the number will try to be strong enough to deny part of this weak activity that we have had,” he said.
But a solid report can still delay any chance of reducing the rate of the Fed, said Pruscino.
“If you get a large number of, say, plus 250,000 jobs, then it will be a slight surprise for the markets, and this will then lead the markets to think, well, maybe the Fed reserve could still delay their rate reductions this year,” he said.
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This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
