Key points:
US President Donald Trump switches his focus from Elon Musk to Fed Chair Jerome Powell as he demands interest-rate cuts.
Bitcoin continues its rebound from the Trump-Musk debacle despite strong US employment data.
Liquidity sparks fresh concerns of a downhill BTC price “cascade.”
Bitcoin (BTC) passed $104,000 at the June 6 Wall Street open as strong US labor market data contrasted with fresh calls for interest-rate cuts.
Bitcoin edges higher as Trump moves to Fed
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD up 2.5% on the day.
Having recovered from snap losses over the ongoing spat between US President Donald Trump and SpaceX CEO Elon Musk, markets digested fresh inflation cues as Trump turned his attention to the Federal Reserve.
“‘Too Late’ at the Fed is a disaster!” he wrote in part of the day’s posts on Truth Social.
Trump is no stranger to criticism of both Fed policy and Chair Jerome Powell, and has frequently demanded interest-rate cuts in 2025 — something that would benefit risk assets and crypto.
“Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great,” he continued, referring to Powell.
“Go for a full point, Rocket Fuel!”
As Cointelegraph previously reported, markets see little chance of cuts coming before the Fed’s September meeting, per data from CME Group’s FedWatch Tool, with Trump’s full point’s worth fully priced out.
The day’s nonfarm payrolls data meanwhile appeared to support the Fed’s current approach, showing a resilient labor market and thus decreasing the need to lower rates.
An official release from the US Bureau of Labor Statistics (BLS) confirmed that “total nonfarm payroll employment increased by 139,000 in May, and the unemployment rate was unchanged at 4.2 percent.”
Analysis warns of Bitcoin “liquidity trap”
Turning to BTC price action, popular trader TheKingfisher returned to order book liquidity for clues as to market direction.
Related: Bitcoin Hash Ribbons metric just delivered its 3rd ‘buy’ signal of 2025
Earlier, Cointelegraph noted various downside price predictions for the short term, with commentators agreeing that BTC/USD could fall below $100,000.
“This $BTC liquidation map (optical_opti timeframe) reveals a massive cluster of long liquidations between ~99k and 102k,” part of an X post read on the day.
“That's a huge magnetic zone below current price. In contrast, short liquidations above ~104.5k are minimal.”
TheKingfisher added that the resulting “strong imbalance” of bid versus ask liquidity increased the risk of a liquidity cascade downward.
“Normies see support; we see a liquidation trap,” the post summarized.
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