THE RED HOT MARKET AFTER FOMC: BROAD SELLING PRESSURE ACROSS THE ENTIRE CRYPTO
Immediately after the message from Chair Powell, the crypto market witnessed a marked negative reaction: BTC lost more than 4,000 USD overnight, leading to over 400 million USD in positions being liquidated within 24 hours. The key reason stems from the FED indicating it will "temporarily" purchase 40 billion USD in T-bills each month, rather than signaling a strong easing as expected by most of the market. The difference between expectations and reality triggered a sell-the-news effect, significantly reducing risk appetite.
Recent historical data shows that BTC typically weakens immediately following FOMC meetings:
• 19/06: -8%
• 31/07: -6%
• 18/09: -7.5%
• 30/10: -28%
The current developments are consistent with this pattern: rising volatility, decreasing liquidity, and selling pressure prevailing. In a context where the market lacks short-term growth momentum, a reasonable strategy remains to maintain DCA discipline, avoid leverage, and wait for signals of cash flow returning before increasing risk.
