Bitcoin Reacts Bearishly to Fed Policy After Each FOMC Update

2 min

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