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 basically priced in, merchants are trying carefully on the Fed’s assertion and Chair Jerome Powell’s press convention for clues on the timing of potential price cuts and the central financial institution’s inflation outlook.

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

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

The Federal Open Market Committee (FOMC) performs a crucial function in shaping world monetary markets by setting U.S. financial coverage.

With eight scheduled conferences annually, its choices on rates of interest straight affect liquidity, danger urge for food, and capital flows throughout belongings, together with Bitcoin.

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

Historic information from 2025 provides vital context for a 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 occasions a yr to determine rates of interest that form liquidity circumstances throughout world markets.

Trying… pic.twitter.com/YBVr0fBXxn

— Ali Charts (@alicharts) January 27, 2026

A key takeaway from the historic information 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 most often.

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