Bitcoin Eyes $115,000 by July, but Strong US Job Data Threatens Rally

Analysts predict Bitcoin could rise to $115k by July, but strong US job data may threaten this rally. Recent ETF inflows show optimism from investors. A jobs report due on June 6 will greatly influence Bitcoin’s market sentiment and Federal Reserve decisions, indicating possible price dips if data is strong.

As Bitcoin nears potential new all-time highs, analysts are eyeing a price target of $115,000 by July. This bullish outlook hinges on a continued institutional buy-in and the anticipation of weaker-than-expected US job data. According to analysts from Bitfinex, if strong institutional interest persists alongside ETF inflows, Bitcoin could break past that key figure by early next month, Cointelegraph reported.

Despite recent volatility, the sentiment surrounding Bitcoin remains largely optimistic. After reaching a peak of $111,970 on May 22, Bitcoin has seen a decline, currently trading around $104,823. While this pullback has raised a few eyebrows, Bitfinex analysts emphasize that investor sentiment is still positive, bolstered by substantial inflows into US spot Bitcoin ETFs, amounting to approximately $5.24 billion in May, as per Farside data.

Market sentiment, embodied by the Crypto Fear and Greed Index, reveals a “Greed” score of 57 out of 100, indicating that many investors are still keen on Bitcoin’s future. The upcoming US jobs report, releasing on June 6, could significantly impact Bitcoin’s trajectory. Its findings will influence the Federal Reserve’s interest rate decisions, which in turn affect market sentiment for Bitcoin and other risk assets.

Should the report show stronger employment figures, analysts warn that Bitcoin may test support levels around $102,000 or lower, potentially triggering a more bearish trend for the cryptocurrency. Conversely, a softer jobs report might encourage the Federal Reserve to consider earlier rate cuts, providing a boost for Bitcoin. Therefore, the effect of this report is seen as crucial for traders, although it’s just one piece of an overall complex market puzzle.

In a more cautionary note, Bitfinex analysts suggest that Bitcoin could dip below the psychological barrier of $100,000, potentially settling in the $95,000 to $97,000 range, an area they believe might attract accumulation from buyers. The last recorded trading close near this range was on May 7.

Interestingly, several analysts had previously forecasted that June would be a pivotal month for Bitcoin, predicting new all-time highs before its climb to $111,970 in late May. Jamie Coutts, chief crypto analyst from Real Vision, noted earlier this year that the market might underestimate Bitcoin’s potential to surge quickly, possibly reaching new heights before the close of the second quarter.