The U.S. Federal Open Market Committee (FOMC) is set to hold its first interest rate meeting of 2026, with market expectations for a rate cut in January at a mere 2.8%. Historical data from 2025 shows that Bitcoin experienced a pullback after seven out of eight FOMC meetings, with the most recent meeting resulting in a 9% drop.
Analyst Ali Charts highlights that Bitcoin typically faces high volatility and downside risks during FOMC policy decision weeks. Despite pre-meeting optimism driven by potential rate cuts, post-announcement reactions have often been bearish, suggesting investors should approach the period with caution.
FOMC Meeting Week Historically Triggers Bitcoin Volatility and Declines
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