Here’s Why Bitcoin’s Reaction To Fed Policy Turns Bearish After Each FOMC Update

Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. The Bitcoin’s behavior around US Federal Reserve announcements has become one of the most consistent market patterns of the year. After every FOMC update, the world’s largest cryptocurrency has reacted with a noticeable downside move, underscoring how closely the asset is now tied to shifting interest-rate expectations and broader macro sentiment.  What Future FOMC Meetings Could Mean For Bitcoin

In an X post, analyst CryptoMichNL has mentioned that the Federal Reserve (FED) is preparing to update the printer from 2021 liquidity settings toward a more supportive 2025 stance. However, this doesn’t mean it will have an immediate impact on the markets, as these things take time. As a result of the update, Bitcoin has dropped after every Federal Open Market Committee (FOMC)meeting in 2025, but these moves are primarily aimed at flushing out longs through high liquidations. Related Reading Here’s Why Bitcoin’s Reaction To Fed Policy Turns Bearish After Each FOMC Update 2 hours ago

According to the expert, the actual move on the markets and the direction should come in the next 1-2 weeks, which would give a better outlook going into 2026. The bullish trend has remained intact, and the thesis is still valid. However, BTC shouldn’t break the lows during the FOMC flush. Instead, it should break the $92,000 resistance zone to retest the $100,000 level. BTC reaction to each FOMC update | Source: Chart from CryptoMichNL on X

Bitcoin is still moving in a choppy pattern, driven by illiquid order books and fast moves in both directions. CryptoMichNL has also highlightedthat BTC is still in for a new upward breakout in the coming days to weeks. Despite the volatility, BTC has continued to form higher lows, which is a clear sign that an upward structure is building.

CryptoMichNL noted that, as the price doesn’t break down anymore, the heavy correctionin the market was highly manipulated and not organic, which is very natural for the market to return to normal. Why Bitcoin Market Structure Remains Intact Despite Deep Pullback

Bitcoin has not proven to be any different from the cycle. A full-time crypto trader and investor, Daan Crypto Trades, pointed outthat the good initial bounce is right off the 0.382 Fibonacci retracement level, which is taken from the entire cycle move. Realistically, that was the lowest the price could go without breaking the broader weekly market structure. Related Reading Did 2025 Mark A Bear Market For Bitcoin? Predictions Point To A $150,000 Rally In 2026 3 days ago

According to Daan, the invalidation is clearly the higher-timeframe outlook, and the November lows would become a very uncomfortable place for the bulls. As the year comes to an end, a lot of the 4-year cycle selling should also be diminishing. Meanwhile, Q1 2026 is shaping up to be extremely important as it will likely reveal where the BTC cyclewill move next. BTC trading at $92,339 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Getty Images, chart from Tradingview.com