Bitcoin falls before the Federal Open Market Committee meeting, then rises after that. Will the affair repeat itself now?

Consistently, the price of Bitcoin exhibits notable fluctuations in light of Federal Open Market Committee (FOMC) meetings. Historical data from recent meetings suggests that Bitcoin typically experiences a drop in value before FOMC rate decisions and then sees significant gains after the announcement.

Bitcoin Falls to $67,000 Ahead of Today's Federal Open Market Committee Meeting... Will the Decisions Change the Trend?

A report from the regular meeting of the US Federal Open Market Committee (FOMC) is expected to be released today, June 12. This report is considered crucial and very important in determining interest rates and monetary policy in the United States of America.

For your information, the Federal Open Market Committee meets eight times a year to discuss all aspects of the U.S. economy and the factors affecting its performance. At its last meeting in December 2023, the committee decided to keep interest rates unchanged between 5.25 and 5.50%. It is worth noting that the price of Bitcoin saw a significant decline in the period leading up to this meeting.

Before every meeting of the Federal Open Market Committee to discuss interest rates, they have always gone down Bitcoin Price. Then, after the decisions were announced, the currency jumped higher.

👈Read more: How does cryptocurrency price inflation affect the currency and reduce its value?

This event was repeated several times during this year and last year. In other words, the change in Bitcoin price direction had an inverse relationship with the Federal Open Market Committee's decisions regarding interest rates at that time.

Before an appointment arrives Meeting of the Federal Open Market Committee (FOMC) Today, June 12, 2024, Bitcoin saw a sharp decline. This decline occurs in the middle Invitations US Senators Elizabeth Warren, Jacky Rosen and John Hickenlooper have called on the Federal Reserve to lower interest rates.

It is worth noting that the senators mentioned in their letter to Federal Reserve Chairman Jerome Powell that the central bank's monetary policy This does not help reduce inflation On the contrary, it increases the suffering of Americans and increases costs.

Finally, market analysts expect a possible recovery in the price of Bitcoin after the next FOMC meeting, based on the historical behavior of the currency. Data suggests that Bitcoin often recovers and thrives after a short period of uncertainty surrounding these meetings, regardless of the Fed's decision.