Bitcoin News Today: Bitcoin's $112K Test Could Signal a Bull Run Triggered by Fed Moves

Bitcoin price action has shown signs of a potential breakout as traders focus on key resistance levels and anticipate market-moving events. On Friday, BTC/USD rose above $112,000, liquidating short positions and drawing attention from analysts who see further upside potential. The bounce off the $112,000 level has been attributed to increased buying pressure, with some traders viewing it as a confirmation of bullish momentum. CoinGlass’ liquidity heatmap indicated that shorts worth $14.32 million were liquidated in an hour, reinforcing the view that market participants are shifting their positions ahead of the U.S. nonfarm payrolls (NFP) report [1].

Analysts have highlighted the significance of the $112,000 level in determining the direction of Bitcoin’s next move. Michael van de Poppe, founder of MN Capital, described the price level as an attractive entry point for long traders, stating that a breakout above this level would represent a “massive long opportunity.” Meanwhile, Rekt Capital emphasized the need for Bitcoin to reclaim the $113,000 level to confirm a sustained bullish trend and improve the chances of a larger price rally [1].

The U.S. jobs report, scheduled for release later in the week, is expected to have a profound impact on the crypto market. A weaker-than-expected report could signal a slowing labor market, potentially increasing the likelihood of a Fed rate cut. According to the CME Group’s FedWatch tool, there is a 99.4% probability that the Federal Reserve will lower the benchmark interest rate by 25 basis points during its September meeting. Analysts suggest that a rate cut could stimulate investor demand for riskier assets, including Bitcoin [1].

In parallel, new developments in the crypto space have drawn regulatory and ethical scrutiny. The Trump family’s venture into the crypto market with American Bitcoin has raised concerns about potential conflicts of interest. The company, which plans to grow its Bitcoin holdings through mining and opportunistic purchases, saw its shares rise by nearly 39% on its stock market debut before settling at $8.04. The Trump family’s broader involvement in crypto-related ventures has drawn criticism from ethics experts and politicians, with some accusing the administration of creating an uneven playing field in the industry [2].

Bitcoin’s price performance remains closely tied to macroeconomic developments, with traders and analysts closely monitoring the U.S. labor market and Federal Reserve policy. If the Fed moves forward with rate cuts, it could provide additional tailwinds for crypto assets, which are sensitive to changes in interest rate expectations. However, the market remains volatile, and confirmation of a sustained bullish trend will depend on Bitcoin’s ability to maintain levels above $112,000 [1].

Source: [1] Bitcoin analysts see a 'massive' move as BTC price regains ... (https://cointelegraph.com/news/bitcoin-analysts-see-massive-move-btc-price-regains-112k) [2] Trump family's American Bitcoin makes stock market debut (https://www.nbcnews.com/business/business-news/trump-american-bitcoin-crypto-venture-raises-conflict-interest-alarms-rcna228837)