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Bitcoin remains in a range below $90,000 and hovers near one-month lows as investors remain cautious ahead of the Federal Reserve’s policy meeting.
Markets’ focus has shifted to the Federal Reserve’s two-day meeting that ends on Wednesday, where policymakers are expected to keep interest rates on hold.
While the pause has largely been factored in, traders are closely watching the Federal Reserve’s statements and Chairman Jerome Powell’s press conference for clues about the timing of a potential rate cut and the central bank’s inflation outlook.
A change in Powell’s tone could have implications for broader risk sentiment and liquidity.
How Bitcoin ($BTC) Will React to the FOMC Meeting: Lessons from Past Cycles
The Federal Open Market Committee (FOMC) plays an important role in shaping global financial markets by setting U.S. monetary policy.
With eight scheduled meetings each year, decisions on interest rates directly impact liquidity, risk appetite and capital flows across assets, including Bitcoin.
As markets look ahead to the conclusion of the first FOMC meeting on Wednesday, expectations for a January rate cut remain very low at 2.8%. This suggests that financial conditions are relatively tight as monetary easing is unlikely to occur in the short term.
Historical data from 2025 provides important context on how Bitcoin tends to react to these events. During 8 FOMC meetings price of bitcoin After 7 o’clock there was a downward trend and only one showed a short-term rally.
The decline ranged from -6% to -29%, while BTC only bounced back in May, rising +15% before losing momentum.
How is Bitcoin $BTC Expected to respond to last FOMC meeting down -9%
The Federal Open Market Committee (FOMC) is responsible for setting U.S. monetary policy and meets eight times a year to determine interest rates that shape liquidity conditions across global markets.
Looking for… pic.twitter.com/YBVr0fBXxn
— Ali Charts (@alicharts) January 27, 2026
The key takeaway from historical data is that FOMC weeks have consistently resulted in high volatility and risk of BTC price downside. While markets often rally ahead of the meeting in hopes of a dovish signal, the reaction following the announcement has been mostly bearish.
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