Analysts: The Federal Reserve (FED) may lower interest rates early, driving Bitcoin back up to $112,000.

According to Gate News bot, Carlo Pruscino, market analyst at CMC Markets, believes that an early rate cut by the Federal Reserve could push the price of Bitcoin back up to $112,000. "If these two rate cuts come much sooner than expected, then this will have a significant impact on the future price action of bitcoin, as well as some other cryptocurrencies," he said. ”

Pruscino said: "The Bitcoin upward target in traders' minds is $112,000, which is a psychological price point."

He stated that the Federal Reserve (FED) has "sufficient data" to make decisions, but the Federal Reserve (FED) still faces uncertainty due to President Trump's tariff policies.

"As they mentioned multiple times in their statement, what is unknown is the tariff and trade policies, so they need some clear evidence in this regard. Improvement in risk sentiment needs to continuously bring risks in order to break through the $112,000 mark and push prices higher when catalysts appear," Pruscino added.

He also pointed out that the U.S. employment report to be released by the Bureau of Labor Statistics on June 6 will be a key indicator for The Federal Reserve (FED) to cut interest rates and the recent price movement of Bitcoin.

Source: Cointelegraph