Bitcoin continues to rise, approaching the psychological $105K mark. Against this backdrop, former US President Donald Trump advocates for a “full” reduction in interest rates by the Federal Reserve.
Strong US Employment Data
Despite calls for rate cuts, markets have received signals that could influence the Fed’s decisions. The US Bureau of Labor Statistics confirmed an increase in the number of employed and an unchanged unemployment rate. This contrasts with calls for lower interest rates and may indicate economic stability.
Liquidity Analysis
Trader TheKingfisher warns of a “liquidity trap” in Bitcoin. The liquidation map shows a large number of long liquidations below the current price. However, there are few short liquidations above $104.5 thousand, increasing the risk of a decrease in liquidity.
Market Reaction
The BTC/USD pair has risen by 2.5% in a day. However, markets see little chance of a rate cut ahead of the Fed’s September meeting. This could mean that investors are expecting a more cautious approach from the regulator.
It is important to remember that investing in cryptocurrencies and other financial instruments involves the risk of losing money. Before making investment decisions, it is recommended to conduct your own research and consider all factors that may affect the market.
