Will Bitcoin Surge to $120,000? A Look at Fed Policy and Market Liquidity

Bitcoin Current Market Review

Figure:https://www.gate.com/trade/BTC_USDT

As of June 5, 2025, according to Gate data, the price of Bitcoin is approximately $105,031, with a 24-hour high reaching $105,993.1. After experiencing a period of adjustment in late May, Bitcoin has regained upward momentum.

On May 22, Bitcoin quickly fell back after reaching an all-time high of $111,970, dipping below the $100,000 mark at one point, raising concerns in the market. However, as policy news became clearer and institutional funds returned, Bitcoin rebounded rapidly.

Changes in macroeconomic policy affect market direction

On May 28, the U.S. Federal Court ruled that the tariffs previously imposed by Trump violated presidential authority, which the market views as a signal that economic policy may “turn dovish.”

Pav Hundal, the chief analyst at Swyftx, believes that this move indicates a potential easing of trade tensions between China and the United States, which could enhance the attractiveness of risk assets. He stated: “This is a typical ‘policy-driven rally’, and the rise of Bitcoin reflects a return of market risk appetite.”

In addition, the Federal Reserve recently sent a signal of “maintaining interest rates unchanged,” which also provided more liquidity support for Bitcoin.

ETFs and institutional funds have become the dominant forces.

Since 2025, the influx of funds into spot Bitcoin ETFs has become one of the core factors driving price increases. According to the data, in just the last week of May, net inflows into domestic ETFs in the United States reached $2.75 billion, setting a new annual high.

According to Arthur Hayes (co-founder of BitMEX), “This is an important signal for institutional investors to fully engage, as they are reassessing the allocation value of Bitcoin.”

Hundal also added that funds in the Asia-Pacific market are gradually shifting towards Bitcoin and other digital assets, forming a “two-way reinforcement” pattern.

Technical analysis and key resistance levels

Currently, Bitcoin is in the recovery phase after a monthly line adjustment, and technical indicators show that the upward momentum has not yet been exhausted. The RSI remains around 60, and there are initial signs of a golden cross in the MACD.

From the perspective of resistance levels, two key points need to be focused on currently:

• Short-term resistance level: $108,500. If it breaks through, it will open up an upward channel to $112,000.
• Strong resistance zone: $120,000, this price level is an important expectation point in the options market, and a breakout may trigger a larger-scale “short squeeze”.

How should investors allocate their resources?

For novice investors, the current Bitcoin market still has a high level of uncertainty, but it also comes with significant upward opportunities. It is recommended to consider the following points:

1. Buy on dips rather than chasing highs: Gradually position between $100,000 and $105,000, and avoid going all in at high points.
2. Pay attention to changes in macro risks: Although Trump’s tariff case is beneficial for the short-term market, the long-term impact still requires attention to subsequent lawsuits and international situations.
3. Reasonable allocation ratio: Beginners should not allocate more than 30% of their assets to Bitcoin, and can use ETFs or indexed products for risk control.
4. Use stop-loss and take-profit tools: Set up trading strategies to avoid uncontrollable losses caused by rapid market fluctuations.

Conclusion

The upward logic of Bitcoin is gradually shifting from “speculative hype” to “fundamental-driven.” Under the combined influence of policy easing, institutional entry, and changes in supply and demand, its price structure is undergoing a fundamental change. Although it still faces volatility and uncertainty in the short term, for prepared investors, 2025 may present a rare opportunity to get on board.

Remember, investing in Bitcoin is a new financial practice that carries both opportunities and risks; rationality and patience are always the most reliable protective charms.