Analysis: The week of the Federal Reserve FOMC meeting is usually accompanied by high volatility and downside risks for Bitcoin

Analyst Ali Charts posted that the Federal Open Market Committee (FOMC) will hold its first interest rate meeting in 2026, with the market's expectation for a rate cut at only 2.8%, indicating that the likelihood of recent policy easing is low.

Looking back at the data from 2025, after eight FOMC meetings, Bitcoin experienced a significant pullback in seven of those meetings, with only one brief increase; after the last meeting, Bitcoin dropped by 9%. Analysis indicates that FOMC meeting weeks are typically accompanied by high volatility and downside risk for Bitcoin, even if the market remains optimistic due to expectations of a rate cut before the meeting, the reactions post-announcement are mostly bearish. Investors need to manage their positions cautiously.