Short the dip and buy the rip? What FOMC outcomes reveal about Bitcoin price action

Bitcoin’s reaction to FOMC decisions often conflicts with traders’ predictions. Will today’s Federal Reserve interest rate outcome lead to a rally or sell-off?

Bitcoin (BTC) price surged above $94,000 on Tuesday, a day before the Federal Open Market Committee (FOMC) interest rate decision, and history suggests that traders should brace for volatility.

Throughout 2025, BTC’s performance around FOMC meetings revealed that macroeconomic expectations are often priced in, and this front-running by traders can overshadow the actual impact of the policy decision itself.

Key takeaways:

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