#FOMCMeeting

Bitcoin ($BTC ) and the FOMC: What happened

Before the FOMC:

BTC was maintaining a consolidation range, with some expectation of rate cuts, which generates optimism in crypto.

Some analysts expected the Fed to give signals of monetary easing.

After the announcement:

The Fed kept rates unchanged and was more conservative than expected.

BTC reacted with a slight drop, between -1.5% and -3% in the 24 hours following.

This was due to the expected cuts being postponed, which reduces risk appetite.

Why does it affect Bitcoin so much?

1. High rates = less liquidity:

Investing in risk assets like BTC becomes less attractive.

2. Fewer cuts = less market growth:

People prefer safer assets while rates are high.

3. Strong dollar = bearish pressure for BTC:

A strong USD usually implies lower demand for cryptocurrencies.

🔮 What to expect for the coming weeks?

If inflation continues to decline, the Fed could make a cut in September or October, which would boost BTC upwards.

If there are negative data points on inflation or employment, BTC could face more corrections.

Current key support level: $64,000 – $65,000

Important resistance level: $70,000

In summary:

Factor Impact on BTC

Fed keeps high rates 🟥 Negative

Inflation moderates 🟨 Neutral with positive bias

Cuts postponed to late 2025 🟨/🟥 Short-term pressure

Global liquidity still controlled 🟥 Limits strong rallies