Bitcoin Reacts Bearishly to Fed Policy After Each FOMC Update

The behavior of Bitcoin around US Federal Reserve announcements has shown consistent patterns, with noticeable declines following each FOMC update. This reflects Bitcoin's sensitivity to interest-rate expectations and macroeconomic sentiment.

Impact of Future FOMC Meetings on Bitcoin

  • Analyst CryptoMichNL notes that the FED plans to adjust liquidity settings towards a more supportive stance by 2025.
  • Immediate market impact is unlikely; expected changes may take time.
  • Post-FOMC meetings in 2025 led to Bitcoin drops aimed at liquidating longs.
  • A potential positive market shift is anticipated in the next 1-2 weeks, offering insights for 2026.
  • Bitcoin should not break current lows during FOMC volatility but aim to surpass the $92,000 resistance to test $100,000.

Bitcoin

  • Bitcoin remains volatile with choppy patterns due to illiquid order books.
  • Despite this, BTC shows signs of an upward breakout, forming higher lows.
  • Market corrections are seen as manipulated rather than organic, suggesting a return to normalcy.

Bitcoin Market Structure Amid Pullbacks

  • Daan Crypto Trades highlights Bitcoin's bounce from the 0.382 Fibonacci retracement level, maintaining broader weekly structure.
  • November lows could challenge bullish sentiments if reached.
  • End-of-year selling trends in a 4-year cycle are expected to decrease.
  • Q1 2026 will be crucial for determining Bitcoin's next cycle direction.

Bitcoin