Bitcoin (BTC) surged past $104,000 on June 6 during the Wall Street open, gaining 2.5% on the day. The move came as former U.S. President Donald Trump reignited his critique of the Federal Reserve, calling for an aggressive “full-point” interest rate cut — a move that could serve as rocket fuel for crypto markets.
“Go for a full point, Rocket Fuel!” Trump urged on Truth Social, criticizing Fed Chair Jerome Powell for failing to match Europe’s rate cuts.
📉 Market Outlook and Fed Position
Despite Trump’s demands, data from the CME Group’s FedWatch Tool shows markets largely price out the possibility of any significant rate cuts before the Fed’s September meeting. Strong labor data from the Bureau of Labor Statistics (BLS) added further pressure against cuts, showing 139,000 jobs added in May and an unemployment rate holding at 4.2%.
📊 BTC Price Analysis: Liquidity Trap Incoming?
While Bitcoin’s price shows bullish momentum, traders are sounding alarms. A growing cluster of long liquidations between $99K and $102K could act as a liquidity magnet, according to popular trader TheKingfisher.
“Normies see support; we see a liquidation trap,” he posted on X, noting an imbalance between bid and ask liquidity.
This suggests a potential short-term pullback, despite broader optimism fueled by Trump’s rate cut comments and ongoing interest in crypto as a hedge.
⚠️ Caution for Investors
Despite bullish headlines, analysts caution that BTC could retrace below $100K in the short term. As always, investors are advised to do their own research and manage risk accordingly.