While tariff tensions and developments between the US – China and other countries negatively affected Bitcoin, BTC fell to $74,000 levels in April.
Afterwards, BTC started to recover with the moderate steps taken by US President Donald Trump and broke a new record by rising above $111,000 in the last days of May.
While tariff tensions have had a significant impact on Bitcoin, Swyftx Chief Analyst Pav Hundal identified Trump’s ongoing tariff uncertainty as a significant threat to Bitcoin.
At this point, Pav Hundal said that Bitcoin could reach $120,000 in June if trade tensions in the US ease.
“The biggest threat to bulls right now is that nothing changes for the next two months and we get stuck in this endless cycle of tariff uncertainty.
If the tariff tensions are resolved, Bitcoin could reach $120,000 in June. However, if the bears say ‘I told you so’, we could see Bitcoin fall below $100,000.”
FED Expects Tariff Uncertainty to Be Resolved for Interest Rate Cuts!
Hundal said that tariff uncertainty also delayed the FED’s interest rate cut decision, adding that there was a risk that the FED would delay monetary expansion until it obtained concrete data on the impact of Trump’s tariffs, which would pose a risk of slowing growth.
“Trump-induced tariff uncertainty has jeopardized the achievement of the 2% inflation target this year. Six months ago, a 2% inflation target seemed possible; today, it is under long-term threat from tariffs.
The US is at a macro turning point and the Fed is walking a fine line right now.”
*This is not investment advice.
