Bitcoin Reaches $105,000 Amid Trump's Calls for Fed Rate Cuts
Bitcoin Price Surge
Bitcoin soared to $105,000, showing a 2.5% gain in a day, despite strong US labor market data, which usually dampens expectations of monetary policy easing. The growth of the first cryptocurrency happened amid persistent demands from US President Donald Trump for the Federal Reserve to reduce interest rates by a whole point.
Trump Criticizes Fed Policy
After a recent conflict with SpaceX CEO Elon Musk, President Trump shifted his focus to Fed Chair Jerome Powell, whom he calls 'Too Slow.' In a post on the Truth Social platform, Trump criticized the central bank head for refusing to cut rates, claiming it would significantly reduce the cost of servicing the US national debt, especially the short-term obligations accumulated under the Joe Biden administration.
'Inflation is practically nonexistent, but if it returns, rates can be raised. It's simple! Powell is costing our country a fortune. Borrowing costs should be much lower!' Trump wrote. He also noted that Europe made ten rate cuts, while the US has done none, adding, 'Let's cut by a whole point—it will fuel the economy!'
Market Doubts Immediate Policy Easing
Despite Trump's demands, data from the Chicago Mercantile Exchange's FedWatch tool indicate a low likelihood of a rate cut before the Fed's September meeting. The market does not expect a whole percentage point cut as the president demands. According to the US Bureau of Labor Statistics, 139,000 jobs were created in non-farm sectors in May, and the unemployment rate remained at 4.2%. These robust figures reduce the need for stimulative measures.
Analysts Warn of Liquidity Risks
Cryptocurrency trader TheKingfisher on social network X highlighted liquidity data in exchange orders, indicating possible sharp Bitcoin price movements. Analysis shows a large accumulation of long positions, which could be liquidated in the $99,000–$102,000 range. 'This is a powerful zone of attraction below the current price. Meanwhile, short liquidations above $104,500 are minimal,' the analyst noted.
This supply and demand imbalance increases the risk of a cascading price drop. 'Novices see support, and we see a liquidity trap,' concluded TheKingfisher.