Understanding Bitcoin’s Volatility Around FOMC Meetings
Bitcoin’s price behavior around Federal Open Market Committee (FOMC) meetings has consistently sparked interest among cryptocurrency investors. Historical data shows that seven out of the last eight FOMC meetings resulted in a price decline for Bitcoin, highlighting notable volatility linked to these pivotal events.
Bitcoin’s Historical Price Patterns Post-FOMC Meetings
During 2025, Bitcoin exhibited a bearish trend surrounding FOMC decisions. For instance, after the FOMC meeting on January 29, 2025, the cryptocurrency’s price dipped by a significant 27%. Similarly, after the December 10, 2025 meeting, Bitcoin saw a 9% decline.
This behavior underlines Bitcoin’s vulnerability to market sentiment shifts influenced by monetary policy announcements. Contrary to the optimistic belief that lower interest rates could bolster risk assets like cryptocurrencies, Bitcoin has often reacted negatively during FOMC weeks. Among the eight meetings last year, only one brought a minor upward price movement.
Low Expectations for January 2026 Rate Cuts
The first 2026 FOMC meeting is just around the corner, and market analysts predict an extremely low 2.8% probability for a rate cut. This expectation essentially means there is unlikely to be a policy shift that would increase much-needed market liquidity. Many experts anticipate that Bitcoin’s price behavior during this meeting may again mirror historical patterns, with bearish movements following the event.
Currently, Bitcoin trades at $89,066, marking a 0.7% increase in the last 24 hours, with fluctuations between $88.2K and $89.5K. Despite the temporary gains, market participants remain cautious as the upcoming FOMC decision looms large.
What Investors Can Learn from Bitcoin’s Reactions
Bitcoin’s repeated price pullbacks during past FOMC meetings suggest caution for investors. While the cryptocurrency market thrives on speculation, understanding these historical trends can help traders make informed decisions. Whether you’re holding Bitcoin long-term or planning short-term trades around these announcements, keeping an eye on external factors like monetary policy is critical.
Crypto Tools and Resources to Stay Informed
Investors looking to navigate Bitcoin’s volatile landscape during FOMC decisions may benefit from tools like real-time price trackers and market analysis platforms. For example, CoinMarketCap offers up-to-date information on Bitcoin prices, historical trends, and market news to help traders stay informed.
