Bitcoin (BTC) Price: Fed Rate Decision Could Drive $112K Target Says Analyst

TLDR

Bitcoin hit a new all-time high of $111,970 on May 22 but has since pulled back to around $102,766 Federal Reserve rate cut timing could push Bitcoin toward analyst target of $112,000 Bitcoin network activity is surging with 557,000 new wallets created on May 29, the highest since December 2023 Large holders increased their Bitcoin purchases by 145% over the past week and 214% over the past month Over 241,360 BTC changed hands on June 2, marking the busiest day since December 2024

---

Bitcoin recently reached a new all-time high of $111,970 on May 22 but has since retreated to $102,766. The world’s largest cryptocurrency is trading 6.72% higher over the past 30 days despite recent price consolidation.

Bitcoin (BTC) Price

Market analysts are watching the Federal Reserve’s upcoming interest rate decision on June 18. CMC Markets analyst Carlo Pruscino believes early rate cuts could drive Bitcoin to $112,000, a key psychological level for traders.

The Fed is expected to hold rates steady between 4.25% and 4.50%. CME’s FedWatch Tool shows 97.5% of market participants expect no change at the upcoming meeting.

Pruscino noted that while the Fed has enough economic data to make decisions, tariff policy remains an unknown factor. President Trump’s trade policies continue to create uncertainty for policymakers.

The US Court of International Trade initially blocked Trump’s tariffs on May 28. However, an appeals court allowed them to continue, and Trump recently doubled tariffs on foreign steel and aluminum to 50%.

Network Activity Tells Different Story

Despite quiet price action, Bitcoin network metrics show increased adoption. On May 29, nearly 557,000 new wallets were created, marking the highest single-day total since December 2023.

📊 Bitcoin's on-chain activity has seen sharp rises this week as its price hovers just below $105K:

📈 May 29th: 556,830 new $BTC wallets created (Highest since December 2, 2023)

🔄 June 2nd: 241,360 coins circulated (Highest since December 8, 2024)

Growth in a network's… pic.twitter.com/2DxknVXrKT

— Santiment (@santimentfeed) June 5, 2025

New wallet creation typically indicates growing interest from retail users. People open wallets to send and receive Bitcoin, often driven by word-of-mouth recommendations or increased media coverage.

Daily transaction volume also spiked recently. On June 2, over 241,360 BTC changed hands, representing the busiest trading day since December 2024.

High coin turnover usually coincides with increased network traffic. Traders move coins between exchanges while investors shift holdings between different wallets.

Large Holders Accumulate

Institutional and whale activity has increased substantially. Data from IntoTheBlock shows large holder inflows jumped 145% over the past week and 214% over the past month.

When big players accumulate Bitcoin, it can reduce available supply on exchanges. This dynamic makes it harder for new buyers to purchase without pushing prices higher.

The combination of whale accumulation and retail wallet growth suggests growing demand at different levels. Individual investors are entering the market while larger players increase their positions.

Source: TradingView

Bitcoin network fundamentals remain strong despite sideways price movement. Hash rate continues at record levels while transaction fees stay manageable for most users.

The upcoming US jobs report on June 6 will provide key economic data. A strong employment number could delay Fed rate cuts and impact Bitcoin’s near-term price direction.

Current on-chain metrics suggest Bitcoin adoption continues expanding even during periods of price consolidation. The network processed its highest wallet creation numbers in over a year while large holders maintain aggressive buying patterns.

The post Bitcoin (BTC) Price: Fed Rate Decision Could Drive $112K Target Says Analyst appeared first on CoinCentral.