Bitcoin‘s price is currently holding steady at around $105,000 as the month of June presents numerous economic hurdles. Ongoing disputes about tariffs, notably involving China, have overshadowed what might have been a promising month, leading to growing concerns among stakeholders.
What Are the Expected Developments in June?
The Federal Reserve is anticipated to hold off on cutting interest rates this month. This delay is a cautious move in light of potential economic challenges. There is much to watch this month, with significant implications for market participants.
Legal maneuvers may attempt to overturn current tariffs, sparking further debates. Countries such as China might take a firmer stance against the United States, potentially leading to stronger rhetoric from the US as seen in previous disputes. Trade deals with other nations like India and South Korea could help moderate these tensions.
How Might the Legal Environment Impact the Market?
The US administration’s legal confrontations could jeopardize its market credibility, increasing economic instability. Plans by OPEC+ to increase oil output may alleviate inflationary pressures by lowering fuel costs. Although the Fed has been hawkish, there is speculation about upcoming announcements delaying rate cuts due to recession risks and legal complexities.
These economic uncertainties could further strain financial markets, potentially exacerbating losses in the cryptocurrency sector. Altcoins could hit new lows, although a substantial return of funds by FTX might provide some relief. The possibility of extended deadlines beyond July for international negotiations adds to the year’s ambiguity.
Bitcoin remains under pressure, trading below the significant support level of $106,800, which is crucial for investor confidence in altcoins. If Bitcoin falls below this threshold in June, it might trigger heightened selling activity.
“We are still creating higher highs and lows, indicating a strong upward trend overall in higher frame setups. Losing the $101-102k area could worsen the situation further. The current market is incomparable to 2021 due to differing circumstances. Bitcoin is facing increasing competition, yet demand seems greater than what’s being mined daily. Patience is a major challenge for many, including myself.”
Analyst Kyle speculates a target of $120,300 to $135,700 for June, indicating a potential upward trajectory for Bitcoin and preparing for substantial gains.
Looking at the ETHBTC pair, Analyst Poppe notes Ethereum’s strong performance in the past months, suggesting a continuation of this upward momentum.
“ETH showed a strong upward movement in April and May, retesting 0.023 and holding there. This suggests we are poised to test the highs and continue the run.”
Without a resolution to these pressing issues, market actors remain wary, awaiting clarity on economic policies and geopolitical dynamics that continue to influence market conditions in June.
