Bitcoin Faces Pressure Ahead of FOMC Meeting Amid Historical Declines

2 min

The Bitcoin price is facing pressure ahead of the Federal Open Market Committee (FOMC) meeting, known for causing fluctuations in the cryptocurrency's value.

Interest Rate Expectations

  • The Federal Reserve is expected to maintain interest rates between 3.5% and 3.75%.
  • This pause follows three rate cuts last year, initially boosting risk assets like Bitcoin.

Currently, Bitcoin trades around $87,780, about 30% below its peak last year.

Bitcoin price

Historical FOMC Impact on Bitcoin

  • Analyst Ali Martinez notes low expectations for a rate cut, at just 2.8%, suggesting unlikely policy easing.
  • Historically, Bitcoin has reacted negatively after most FOMC meetings, with notable declines following seven out of eight decisions in 2025.
  • Exceptions occurred in May when Bitcoin briefly rallied by 15% post-meeting.

Technical Analysis and Key Levels

  • According to analyst BitBull, Bitcoin is nearing a key decision zone at the Active Investor Mean, approximately $87,500.
  • Short-term holder cost basis is around $96,500, indicating potential selling pressure if prices rise.

Bitcoin price

  • The True Market Mean at $80,700 marks the boundary between routine corrections and deeper weaknesses.
  • Realized price near $56,000 shows long-term holders remain profitable and resilient to volatility.

If Bitcoin maintains support above $87,500, it indicates market strength; a fall below could lead to a move toward $80,700.