Bitcoin Maintains $100,000 Level Despite Market Volatility
- Bitcoin remains above the $100,000 threshold, despite the market recording $35 million in short positions being liquidated and increased macroeconomic instability.
- Trump's comments about the Fed Chair position and the strong rise of the S&P index have boosted the short-term recovery of the cryptocurrency market.
The strength of Bitcoin [BTC] has been clearly demonstrated recently.
Despite macroeconomic pressure, expectations of interest rate cuts, notable statements from Trump about the Fed Chair, and restructuring activities from institutions, BTC remains firmly trading above $100,000 on the price chart.
As a result, FOMO sentiment only appears at a moderate level, not yet transitioning to an extreme state of excitement.
This situation indicates a continuation of the upward trend. Currently, in mid-2025, the market has high expectations for an interest rate cut scenario - with a probability of up to 97.4% for a reduction decision at the upcoming FOMC meeting.
This is considered a strong confidence signal for the market.
However, what if the Fed does not implement the cut? What if the CPI index rises again and inflation becomes uncontrolled? The mid-June market could become chaotic.
Conversely, if BTC continues to maintain its support, a breakout scenario could form as early as the second half of 2025.
Stable Labor Market Reinforces BTC's Upward Trend
The May Non-Farm Payrolls report was quite positive, with 139,000 new jobs, exceeding the predicted 125,000, though slightly lower than April's 147,000.
The unemployment rate remained at 4.2%, indicating a stable and healthy labor market.
Source: Trading Economics
Some analysts believe these positive employment figures may contradict expectations of interest rate cuts. If the economy remains stable, the Fed would have little reason to lower rates.
David Hernandez, Cryptocurrency Investment Specialist at 21Shares, commented to TinTucBitcoin:
"BTC has built a solid foundation on the critical support level of $100,000. Each day of trading above this level further reinforces its role as a launching point for subsequent increases."
He added that BTC's ability to maintain its price amid volatility shows growing confidence from institutions, especially as the Fed interest rate market is almost certainly expected to remain unchanged this June.
In summary, a stable labor market helps control inflation pressure without further tightening monetary policy. This creates room for the Fed to temporarily postpone rate hikes while supporting capital investment flows into risky assets like Bitcoin.
Fed Maintains Stable Stance, BTC Provides Strong Support
The US economy continues to control inflation well with a series of "exceeding expectations" data, so the likelihood of the Fed maintaining rates at the upcoming meeting is quite high.
The notable point is that the 97.4% probability has already been reflected in the price. This is why Bitcoin's momentum becomes even more important.
While short-term volatility is unavoidable as investors restructure their portfolios before the Fed's decision, BTC's stability above $100,000 helps maintain FOMO sentiment and confirms a solid support zone.
A similar trend has continued in the past two weeks.
Despite BlackRock reducing its holding proportion, Bitcoin has not experienced significant correction. Maintaining the six-figure level despite distribution pressure from institutions further confirms BTC's stable macroeconomic foundation.
Source: TradingView (BTC/USDT)
Trump's Comments on Fed Chair Stir the Market
Trump unexpectedly hinted at changing the Fed Chair despite Powell's term extending to 2026.
Source: The Kobeissi Letter
These statements caused the cryptocurrency market to increase by 2.5% in 24 hours, along with $35 million in short positions being liquidated.
However, if this is only a psychological effect without fundamental support, the upward momentum could quickly reverse.
If CPI is controlled and the Fed truly maintains rates as expected, BTC's price foundation at $100,000 will become an ideal launching pad.
Conversely, if the market anticipates too early, significant volatility may occur before establishing a new trend.
Currently, Bitcoin is not weakening - it is accumulating. If macroeconomic factors are favorable, the next breakout may not only reestablish the old peak but also create a new market record.
