"If the Fed Cuts Rates Early, Bitcoin Could Surpass $112,000"

If the U.S. central bank, the Fed (Federal Reserve System), lowers interest rates faster than the market expects, there is an analysis suggesting that Bitcoin could rise as high as $112,000.

According to cryptocurrency media outlet Cointelegraph on the 6th, Carlo Fruscino, a CMC Markets analyst, stated, "If two rate cuts occur sooner than anticipated, it would significantly impact the price flow of cryptocurrencies such as Bitcoin," adding, "The psychological resistance level traders are watching is $112,000."

After hitting an all-time high of $111,970 on May 22, Bitcoin has since undergone a slight correction, now standing at $102,766. The U.S. jobs report to be released today is expected to be a key indicator for gauging the Fed's interest rate policy and Bitcoin's short-term movement.

Fruscino noted, "While some recent U.S. economic indicators have slowed, if employment figures come out stronger than expected, a rate cut could be further delayed." He added, "For example, if new jobs exceed 250,000, it would signal to the market that 'the Fed may not cut rates within this year.'"

The Fed is set to decide on its benchmark rate on the 18th. According to the CME FedWatch Tool, 97.5% of the market expects no change to rates. Fruscino analyzed, "Although the Fed has enough data for its decision, uncertainty remains over President Donald Trump's tariff policies."

Previously, President Trump had doubled tariffs on imported steel and aluminum; while the U.S. court temporarily blocked this, it has been reinstated on appeal.

Fruscino said, "For Bitcoin to surpass $112,000, a broader increase in risk appetite needs to be in place," adding that "a clear policy catalyst will be necessary to drive further gains."