Key Fed Data This Friday Adds More Uncertainty After $1.8B Crypto Crash – Bitcoin $107K or $130K?

Key Federal Reserve (Fed) data this week, including speeches from Chair Jerome Powell, alongside Friday’s release of the critical PCE inflation figures, are shaping up as important crypto market ￰0￱ Monday’s $1.8 billion crypto liquidation shook investor confidence, traders are bracing for fresh signals on the Federal Reserve’s policy stance that could ripple across risk ￰1￱ Bitcoin, analysts remain sharply divided on whether the world’s largest cryptocurrency is headed for a retracement toward $107K or preparing for a breakout that could send it beyond $130K, with macro uncertainty amplifying every ￰2￱ Fed Data Signal Caution on Rate Cuts Monday’s hawkish tone emerged when ￰3￱ Fed President Alberto Musalem voiced concerns about further rate cuts beyond September’s 25 basis point reduction , citing inflation above the Fed’s 2% target despite a softening labor ￰4￱ Fed President Bostic reinforced this caution, projecting only one rate cut for 2025 with core inflation at 3.1% and unemployment rising to 4.5% by year-end.

BREAKING: FED PRESIDENT BOSTIC JUST SAID THERE'S NO REASON FOR FURTHER RATE CUTS THIS YEAR! ￰5￱ — Coinvo (@ByCoinvo) September 22, 2025 Markets reacted swiftly, with a stronger dollar, rising Treasury yields, and reduced expectations for a November rate ￰6￱ tumbled to $111,800, erasing weekly gains as $1.8 billion in crypto liquidations dragged the total market cap down to $3.89 ￰7￱ Young, Chief Analyst at MEXC Research, told Cryptonews that macro catalysts are driving BTC between $107K downside risk and a potential $135K ￰8￱ 407,000 traders were liquidated as Bitcoin fell below $112,000 and Ether dropped under $4,150, marking the largest flush-out of 2025.), Metaplanet, and Bitmine falling despite announcing new digital asset purchases. “ This reflects investor skepticism in portfolio expansion until there’s clarity on market direction and macro influence ,” Young ￰9￱ Sees Inflection Point as Catalyst for Bitcoin $107K Support or $130K Breakout The MEXC analyst sees Bitcoin at a crucial inflection point as cycle exhaustion signals ￰10￱ analysis shows sustained closes below $112,000 risk pulling BTC toward $107,000 support, a level bulls must defend to prevent deeper retracement to the critical $100,000 mark. “ Recent liquidations may cause short-term pain, but they’re often healthy rebalancing, especially at this ￰11￱ participants view this pullback as an accumulation opportunity rather than capitulation ,” Young ￰12￱ projects a sustained break above $117,000 will signal bull control, opening price discovery toward $130,000-$135,000 before the current cycle ends.