Bitcoin nears $105K as Donald Trump demands 'full point' Fed rate cut
Summary
Bitcoin (BTC) surpassed $104,000 on June 6, rising 2.5% amid strong US labor market data and discussions about potential interest-rate cuts. Former President Donald Trump criticized Federal Reserve policy, advocating for significant rate cuts to benefit risk assets and cryptocurrencies. The US Bureau of Labor Statistics reported a nonfarm payroll increase of 139,000 in May, with the unemployment rate steady at 4.2%, supporting the Fed's current stance against rate cuts. Analysts warned of a potential "liquidity trap" for Bitcoin, noting a significant cluster of long liquidations between $99,000 and $102,000, which could lead to downward price pressure. The imbalance in market liquidity raises concerns about a possible liquidity cascade.
