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    Home » Bitcoin to hit $130K? Analyst predicts major crypto surge on Fed rate cut and altseason rally
    Markets 3 days ago

    Bitcoin to hit $130K? Analyst predicts major crypto surge on Fed rate cut and altseason rally

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    12-6-2025 – Renowned market analyst Cyclop has predicted a dramatic surge for Bitcoin and altcoins, driven by an almost certain interest rate cut from the U.S. Federal Reserve this June 2025. With a 99.9% likelihood of monetary policy easing, Cyclop envisions Bitcoin soaring to an unprecedented $130,000, sparking a robust rally in large-cap altcoins and heralding the dawn of a full-fledged altseason. Yet, he tempers his optimism with a note of caution, warning of potential turbulence in the near term.

    The case for a rate cut is underpinned by compelling economic indicators. May’s Consumer Price Index (CPI) climbed to 321.465, a slight uptick from April’s 320.795, while inflation edged up from 2.3% to 2.4%, still well below January’s 3% threshold. Unemployment, steady at 4.2% for three consecutive months, further bolsters the argument for a dovish Federal Reserve. Historically, such rate reductions have acted as powerful tailwinds for cryptocurrencies, unleashing liquidity, slashing borrowing costs, and igniting risk-on sentiment among investors. “Lower rates create a fertile ground for crypto to thrive,” Cyclop observes, pointing to the influx of capital into Bitcoin and altcoins that often follows.

    graph depicting rate cut in june and bitcoin rally
    x/𝗰𝘆𝗰𝗹𝗼𝗽

    However, the path to prosperity is not without pitfalls. Cyclop highlights three critical factors that could shape the market’s trajectory: inflation cooling closer to 2%, unemployment creeping above 4.3%-4.4%, and resolution of uncertainties surrounding proposed tariffs under the Trump administration. At present, inflation lingers at 2.4%, and unemployment holds at 4.2%. Meanwhile, tariff talks remain fluid, with a U.S. appeals court reviewing Trump’s proposals, and a decision expected post-July 31. Whispers of a potential agreement with China on rare earths and new tariff deals with other nations add further complexity to the macroeconomic landscape.

    Reflecting on past cycles, Cyclop notes that rate cuts have often catalysed Bitcoin’s meteoric rises. In early 2023, a significant cut sparked a 20% surge within weeks, though a modest 25-basis-point reduction in 2024 triggered a 6% dip, underscoring the influence of broader economic conditions. Should the stars align—rate cut, favourable inflation, and clarity on tariffs—Cyclop foresees Bitcoin shattering records by hitting $130,000 in 2025, with altseason potentially peaking in November or December. Yet, he remains pragmatic, acknowledging that short-term volatility could test investors’ resolve, even as the long-term outlook gleams with promise.

     

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