Bitcoin Price Poised for Surge as Fed Rate Cut Odds Increase to 60%

Bitcoin is trading around $95,000 amid rising expectations for a Federal Reserve rate cut, now at 60% for June. Analysts believe if it surpasses $95,000, it could soar past $100,000. Conversely, a drop below $93,000 might take the price back to around $84,000. Attention now shifts to job data due May 2 which could further influence Bitcoin’s market standing.

Bitcoin’s price is on a critical threshold, hovering at $95,000 as expectations of a Federal Reserve interest rate cut rise significantly. Recent indications suggest there’s now a 60% chance of such a cut at the Fed’s June 18 meeting, driven by concerns over the US economy which is showing signs of contraction. If Bitcoin can break past this $95,000 mark, analysts speculate it could swiftly climb towards $100,000. Conversely, if it dips below $93,000, the price may potentially revert to around $84,000.

As reported by Cointelegraph Markets Pro and TradingView, Bitcoin edged upwards after falling below $93,000 following the new US GDP data, which highlighted the economy’s decline. A shrinking economy often leads the Federal Reserve to consider rate cuts sooner, since this can stimulate market activity. Lower yields on safer investments like bonds typically push investors towards Bitcoin and other riskier assets.

Since April 30, the odds for a Fed rate cut have risen from 57% to 60%. Historically, anticipations of these cuts have been bullish for assets like Bitcoin. For example, ahead of the last cut on December 18, 2024, Bitcoin surged more than 20%. Analyst BTCmoonmath observed on X, “Bitcoin surges back toward $95K, rebounding from bearish US GDP data,” indicating traders are viewing rate cuts as a positive signal, despite current economic struggles.

The market’s attention now turns to the upcoming jobs report due on May 2. This report could reveal how many jobs were created in April, further shaping Bitcoin’s trajectory. Analysts are keenly watching the $95,000 level — a crucial point for traders. A sustained push through this threshold may indicate a strong upward move.

Glassnode’s Week Onchain report highlighted that Bitcoin also aimed to hold above other important metrics, including the 111-day simple moving average at about $91,300 and the short-term holder cost basis around $93,200. Recent gains had allowed Bitcoin to reclaim these benchmarks, suggesting bullish momentum. However, failing to maintain above these levels could see the cryptocurrency returning to bearish territory, potentially costing investors significantly.

Analyst AlphaBTC shared that Bitcoin is poised to possibly “blast through $96,000”, with a decisive move above $95,000 expected to transition it out of its current consolidation phase and onto $100,000. He expressed a desire to see a strong upward shift to the low $100Ks. However, should Bitcoin fall below the April 30 low at $93,000, it could see further decline toward $84,000 or $88,000.

Daan Crypto Trades echoed similar sentiments, indicating that if Bitcoin can consolidate gains and avoid rejection, it would be well-placed for a significant move toward the $100,000 range.

As always, potential investors should tread carefully. This article does not constitute investment advice. Every trading action carries risks, and it’s crucial for individuals to do their own thorough research before making financial decisions.