US President Donald Trump has shifted his focus from Tesla CEO Elon Musk to the Federal Reserve’s interest-rate policy, sending shockwaves through financial markets. The sudden change in Trump’s attention has led to a rebound in Bitcoin prices.
Bitcoin surged past $104,000 at the June 6 Wall Street open, defying strong US employment data that suggested lower interest rates were unlikely. Despite the mixed signals, markets have digested fresh inflation cues and taken cues from Trump’s latest posts on Truth Social.
Trump has frequently criticized Fed Chair Jerome Powell and demanded interest-rate cuts in 2025, which would benefit risk assets like Bitcoin. However, market data suggest little chance of cuts before the Fed’s September meeting. The day’s nonfarm payrolls data showed a resilient labor market, decreasing the need to lower rates.
Meanwhile, popular trader TheKingfisher has warned of a potential “liquidity trap” in Bitcoin, with a cluster of long liquidations between $99k and $102k revealing a massive imbalance in bid versus ask liquidity. This imbalance increases the risk of a liquidity cascade downward, potentially taking BTC/USD below $100,000.
The shift in Trump’s attention has sparked fresh concerns about Bitcoin’s price volatility, but the cryptocurrency continues to rebound despite strong US employment data.
Source: https://cointelegraph.com/news/bitcoin-nears-105k-donald-trump-demands-full-point-fed-rate-cut