Bitcoin Faces FOMC Test as Past Meetings Trigger Sharp Selloffs

Bitcoin stays rangebound beneath $90,000, hovering close to one-month lows, as traders stay cautious forward of the Federal Reserve’s coverage assembly.

Market focus has shifted to the Federal Reserve’s two-day assembly, which concludes on Wednesday, with policymakers anticipated to maintain rates of interest unchanged.

Whereas a pause is essentially priced in, merchants are trying intently on the Fed’s assertion and Chair Jerome Powell’s press convention for clues on the timing of potential charge cuts and the central financial institution’s inflation outlook.

Any shift in Powell’s tone might affect broader danger sentiment and liquidity.

How Bitcoin ($BTC) Is More likely to React to the FOMC Assembly: Classes From Previous Cycles

The Federal Open Market Committee (FOMC) performs a essential position in shaping international monetary markets by setting U.S. financial coverage.

With eight scheduled conferences every year, its selections on rates of interest immediately affect liquidity, danger urge for food, and capital flows throughout property, together with Bitcoin.

As markets sit up for the conclusion of the primary FOMC assembly on Wednesday, expectations for a January charge reduce stay extraordinarily low at simply 2.8%. This means that financial easing is unlikely within the close to time period, holding monetary circumstances comparatively tight.

Historic knowledge from 2025 provides vital context for the way Bitcoin tends to react round these occasions. Out of eight FOMC conferences, Bitcoin’s value declined after seven, with just one producing a short-lived rally.

The drawdowns had been typically sharp, starting from –6% to –29%, whereas BTC solely rallied in Could, with a +15% transfer earlier than momentum light.

HOW BITCOIN $BTC WILL REACT TO FOMC MEETING, LAST TIME IT DROPPED BY -9%

The Federal Open Market Committee (FOMC) is chargeable for setting US financial coverage, assembly eight instances a 12 months to resolve rates of interest that form liquidity circumstances throughout international markets.

Trying… pic.twitter.com/YBVr0fBXxn

— Ali Charts (@alicharts) January 27, 2026

A key takeaway from the historic knowledge is that FOMC weeks have constantly introduced heightened volatility and a danger of a BTC value drop. Whereas markets typically rally forward of conferences on hopes of dovish indicators, the post-announcement response has leaned bearish usually.

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