Rate Cuts Probability Hits 99.9% — Here’s How Bitcoin Might React 

Bitcoin may be on the verge of a major price breakout as markets price in an almost certain interest rate cut by the U.S. Federal Reserve later this month. According to CME FedWatch data, there is now a 99.9% probability that the Fed will reduce rates at its June 18 meeting—a potential macro catalyst that could push BTC toward $130,000 and trigger a wider altcoin rally.

Analyst Cyclop points to historical market behavior following rate cuts, noting that easing monetary policy has consistently injected liquidity into risk assets—crypto included. In previous cycles, such shifts have marked the beginning of high-cap crypto pumps and full-blown altseasons.

A chart shared by the analyst outlines Bitcoin’s price action in relation to macro liquidity flows. If the rate cut materializes, it can unleash a new leg of upside momentum.

The projected target from the breakout points toward $130,000, supported by an improving global liquidity backdrop.

Bitcoin has historically responded positively to increased liquidity and dovish central bank policies. Lower interest rates reduce the opportunity cost of holding non-yielding assets like Bitcoin and tend to push investors toward alternative stores of value in search of higher returns. Additionally, rate cuts often weaken the U.S. dollar, further fueling capital inflows into crypto markets.

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Bitcoin Targeting $120,000 While Altcoins Signal Historic Breakout Potential

The setup now mirrors key turning points seen in past cycles, where monetary easing triggered sustained rallies in both Bitcoin and the broader digital asset space. Should the Fed proceed as expected, the move could spark a chain reaction: a Bitcoin breakout, followed by capital rotation into major altcoins, and ultimately, a broader altseason.

With the countdown to the Fed’s decision underway, traders are watching closely. The next policy move from the central bank may not just impact traditional markets—but could also define the trajectory of crypto markets for the remainder of the year.

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