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Bitcoin (BTC) Price Dips Below $106K Amid Market Sell-Off, But Analyst Eyes $200K Target by Year-End | Flash News Detail | Blockchain.News
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6/30/2025 2:51:00 PM

Bitcoin (BTC) Price Dips Below $106K Amid Market Sell-Off, But Analyst Eyes $200K Target by Year-End

Bitcoin (BTC) Price Dips Below $106K Amid Market Sell-Off, But Analyst Eyes $200K Target by Year-End

According to @rovercrc, the cryptocurrency market saw a broad sell-off, with Bitcoin (BTC) falling over 2.5% to below $105,900. Altcoins experienced steeper declines, with Ether (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) dropping between 5% and 7%, as cited in the report. This downturn in risk assets was partly attributed to geopolitical tensions. However, despite the dip, Matt Mena, a crypto research strategist at 21Shares, suggests that softer-than-expected U.S. inflation data could be a major bullish catalyst. Mena stated that if BTC breaks out of the $105,000-$110,000 range, it could see a sharp move to $120,000. He further noted that with continued momentum, a Bitcoin price of $200,000 by the end of the year is now 'firmly in play,' driven by factors like cooling inflation, potential Fed policy easing, and increasing institutional adoption.

Source

Analysis

The cryptocurrency market experienced a broad-based selloff late Thursday, with Bitcoin (BTC) losing crucial ground as risk-off sentiment intensified. The leading digital asset slipped over 2.5% in 24 hours, falling to a key level of around $105,900. The BTCUSDT pair reflected this volatility, charting a daily range between a high of $108,746 and a low near $106,766. While Bitcoin's dip was significant, the pain was more acute in the altcoin market. Major tokens including Ether (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) posted steeper losses, with declines ranging from 5% to 7%. For instance, Litecoin (LTC) saw its LTCUSDT pair drop 2.27% to $84.81. This pattern of Bitcoin resilience relative to altcoins is a classic sign of market uncertainty, where capital often flows from higher-beta assets back into the perceived safety of BTC, even as it also declines.



Geopolitical Pressures and Macroeconomic Signals


The downturn in digital assets coincided with renewed geopolitical tensions. President Trump's threats of new tariff measures and escalating concerns over a potential conflict involving Iran and Israel injected significant uncertainty into global markets. Trump's stark warning about a potential conflict contributed to an initial flight from risk assets. Interestingly, while U.S. equities managed to absorb the pressure and close with modest gains, the more speculative crypto market was unable to shake off the bearish sentiment, highlighting its continued sensitivity to global macro and political events. However, beneath the surface of this risk-off move, conflicting economic data provided a more nuanced picture. The U.S. Producer Price Index (PPI) for May came in softer than anticipated, and initial jobless claims unexpectedly remained at a multi-month high of 248,000. This data, suggesting a cooling economy, traditionally builds the case for a more dovish Federal Reserve—a long-term positive for assets like Bitcoin.



Analyst Sees $200K BTC Potential After Inflation Data


Despite the immediate price weakness, some analysts see the recent macroeconomic data as a powerful bullish catalyst. According to Matt Mena, a crypto research strategist at 21Shares, Wednesday's softer-than-expected Consumer Price Index (CPI) report has set the stage for a significant Bitcoin rally. The CPI rose just 0.1% in the prior month, below the 0.2% forecast by economists surveyed by Reuters, strengthening the argument for Federal Reserve policy easing later this year. Mena suggests that this cooling inflation could be the key to unlocking Bitcoin's next major leg up. He stated that a decisive breakout from the current $105K-$110K consolidation range could trigger a rapid ascent to $120,000. More significantly, Mena believes this momentum could accelerate Bitcoin's path toward his year-end target, putting a price of $200,000 "firmly in play."



Mena's optimistic forecast is rooted in the confluence of improving macro conditions and strengthening crypto-native fundamentals. He noted that the CPI tailwind arrives alongside positive developments like growing sovereign and institutional adoption, the rollout of state-level Strategic Bitcoin Reserve (SBR) programs, and the approach of clearer stablecoin regulation. "As macro clarity improves, we should see Bitcoin flows accelerate - driven by renewed institutional confidence," Mena explained. This influx of capital, particularly through vehicles like spot Bitcoin ETFs, could supercharge demand. The market is already pricing in these expectations, with traders now anticipating nearly two full 25-basis-point rate cuts from the Fed this year. While the BTC/USD pair struggles in the short term, some altcoin pairs like ETH/BTC showed relative strength, climbing 2.25% to 0.02312, suggesting complex capital rotations are at play as traders position for the next market-defining trend.

Crypto Rover

@rovercrc

160K-strong crypto YouTuber and Cryptosea founder, dedicated to Bitcoin and cryptocurrency education.

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