US Fed surprise rate cut may lead to Bitcoin surge: Analyst

Pruscino said the Federal Reserve has “enough data” to make a decision but is still facing uncertainty due to US President Donald Trumps tariffs.

“As theyve mentioned many times in their statements, the unknown is tariff policy and trade policy, so they need to have some clear evidence on that,” Pruscino said.

“There needs to be a continuation of risk on improved risk sentiment for $112,000 to be cracked, to push higher when you get catalysts,” he added.

US Jobs report will be a key indicator

The US Court of International Trade blocked Trump from imposing his tariffs on May 28, arguing that he overstepped his authority. However, an appeals court allowed them to continue, and Trump recently doubled tariffs on foreign steel and aluminum to 50%.

Pruscino said the US jobs report, set to be released by the Bureau of Labor Statistics on June 6, will be a key indicator for both the Fed interest rate cut and Bitcoins near-term price action.

“Going into this number here, we‘ve had some weak US activity just recently. So the number’s going to try and be strong enough to negate some of that weak activity that weve had,” he said.

But a strong report may further delay any chance of a rate cut from the Fed, Pruscino said.

“If you get a large number of, say, plus 250,000 jobs, then thatll be a slight surprise to the markets, and that will then lead the markets to think, well, perhaps the Fed Reserve may further delay their rate cuts this year,” he said.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.