FOMC Meeting Week Typically Brings High Bitcoin Volatility and Downside Risk

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Bitcoin analysis from January 28, 2026, indicates that the FOMC will meet this week, with only a 2.8% chance of a rate cut. In 2025, seven out of eight FOMC meetings were followed by Bitcoin corrections. Volatility spiked after each meeting, including a 9% drop following the last one. Bitcoin analysis suggests that investors should prepare for downside risks and carefully manage their positions during policy weeks. Volatility remains a key factor influencing market reactions.

BlockBeats news: On January 28, analyst Ali Charts posted that the U.S. Federal Open Market Committee (FOMC) will hold its first interest rate meeting in 2026. The market's expectation for a rate cut in January is only 2.8%, indicating that significant policy easing is unlikely in the near term. Looking back at 2025 data, out of eight FOMC meetings, Bitcoin experienced a notable pullback after seven of them, with only one instance showing a brief rise. In the most recent meeting, Bitcoin dropped by 9%.


The analysis indicates that Bitcoin typically experiences high volatility and downside risks during the FOMC policy decision week. Even if the market remains optimistic before the meeting due to expectations of rate cuts, the post-announcement reactions are often bearish. Investors should exercise caution in managing their positions.

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