Bitcoin Eyes $120K Breakout as Rate Cut Hopes Fade for July
NEW YORK — Bitcoin is locked in a holding pattern near $103,000, but traders say the calm won’t last long. A push past $108,000 could trigger a sharp rally toward $120,000, even as the Federal Reserve dials back expectations for a near-term rate cut.
Bitcoin Moves Sideways, Traders Predict Breakout
Bitcoin opened the U.S. trading session on May 14 hovering around $103,000, showing signs of consolidation after an attempt to reclaim $105,000 the previous day. While momentum has slowed, the consensus among top traders is that the bull run isn’t over — just paused.
“Break $108K and $120K is on the table,” said trader Roman.
“Consolidation usually means continuation,” he added.
Popular analyst Byzantine Trader echoed the view, noting that a flat Bitcoin could give room for altcoins to run independently. The market tone suggests confidence in further upside — but patience is wearing thin.
Fed Keeps Markets Guessing on Rate Cuts
Markets had hoped a soft U.S. inflation report would prompt an earlier interest rate cut, but the Federal Reserve remains unmoved. The Consumer Price Index (CPI) came in cooler than expected, yet it failed to ignite a rally across risk assets, including crypto.
“The Fed is staying cautious,” wrote QCP Capital in a note to clients.
“Two rate cuts are now forecast for 2025 — down from four projected just a month ago.”
All eyes are now on the Producer Price Index (PPI) release, expected May 15, as traders look for any fresh signal on the Fed’s direction.
Data from CME’s FedWatch Tool suggests the next likely interest rate cut will come in September, not July. Markets have swiftly adjusted to this tone, removing the prospect of aggressive monetary easing in the near term.
Bitcoin Bullish — But With a Warning
Despite the hawkish Fed backdrop, optimism remains that Bitcoin can still climb higher in the short term. Analysts see a path to $120,000, but only if BTC can break resistance at $108,000 and maintain the current consolidation zone.
Still, as interest rate forecasts are revised downward, some are cautioning that Bitcoin’s bull cycle may be closer to its peak than many believe.
