Analysis: Bitcoin Typically Experiences High Volatility and Downside Risk During Federal Reserve FOMC Meeting Weeks
BlockBeats News, January 28, analyst Ali Charts stated that the Federal Open Market Committee (FOMC) will hold its first interest rate meeting of 2026, and the market's expectation for a rate cut in January is only 2.8%, indicating that the possibility of policy easing in the near term is low. Reviewing the data from 2025, out of eight FOMC meetings, bitcoin experienced a significant pullback after seven of them, with only one brief increase; after the last meeting, bitcoin dropped by 9%.
The analysis pointed out that FOMC interest rate decision weeks are usually accompanied by high volatility and downside risk for bitcoin. Even if the market remains optimistic before the meeting due to expectations of a rate cut, the reaction after the announcement is mostly bearish. Investors need to manage their positions cautiously.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Yen stalls at 160.00 on Tokyo's warning ahead of Japan's growth data
AI Chip Expansion Continues, Applied Materials (AMAT.US) Q1 Revenue Guidance Exceeds Expectations
Applied Materials reported Q4 revenue of $10.41 billion, surpassing expectations and setting a record for the full year. Its Q1 guidance also exceeded forecasts, driven by strong demand for AI chips, and the stock rose about 3% after hours.
Saba Capital Management reports acquisition of $755,308.44 in Mexico Fund common shares
Juniper Investment Reports Acquisition of $5.11 Million in Orthofix Medical Common Shares
