Warning Pre-FOMC: The Re-emergence of Bitcoin's Typical "Sell-the-News" Pattern

Bitcoin's value ascended to nearly $94,600 in anticipation of a predicted rate cut from the U.S. Federal Reserve. However, analysts caution about a potential swift drop post-announcement, a pattern observed after the last four Fed policy decisions. The same setup in September and October resulted in significant price decreases for Bitcoin. Observing the on-chain behaviour, XWIN Research Japan noted that institutional players are adopting defensive strategies, moving capital to the sidelines. This signifies event-driven hedging. Crowded speculative positions can trigger a rapid sell-off if the market changes direction. The broader context reveals that Bitcoin, despite its recent gains, is underperforming the global crypto market, indicating that it could be bearing the brunt of macroeconomic uncertainty. Traders are closely monitoring stablecoin liquidity and leverage metrics, bracing for the consistent volatility that follows these announcements.