FOMC Becomes the Main Cause of Bitcoin's Continuous Decline

The Federal Open Market Committee (FOMC) or the meeting held by The Federal Reserve (The Fed) to determine the direction of economic policy, is usually related to interest rate decisions.

During the current period, the FOMC, which is usually interconnected with the crypto market, has instead become a nightmare for those assets. In October last year, The Fed held interest rates steady and caused Bitcoin to drop from US$113 thousand to US$109 thousand on Wednesday (29/10), according to Trading View data.

Then, in December 2025, Fed Chair Jerome Powell announced a reduction in interest rates to 3.50-3.75%, and Bitcoin plummeted from US$94 thousand to US$91 thousand on Wednesday (10/12).

After that, in January this year, The Fed kept interest rates at 3.50-3.75%, which caused Bitcoin to decrease to US$89 thousand on Wednesday (28/01). This led the asset to continue to decline until it briefly touched the price of US$59 thousand.

Finally, The Fed has just held its meeting and once again kept the central bank's interest rates steady. As a result, a decline occurred from the price of Bitcoin US$74 thousand to US$70 thousand on Wednesday (18/03).

Thus, in this cycle, the FOMC has not been able to push Bitcoin's price to surge, even though its announcement was positive in nature. This indicates that the structure of the Bitcoin market is now not dependent on The Fed's policy direction.

This is reinforced by the statement from analyst Wintermute that the FOMC is now acting as a barrier to Bitcoin's rally, making outflows from the exchange-traded fund (ETF) market inevitable. However, it should be noted that the FOMC is one of the contributing factors to the decline.

Disclaimer Alert. Not Financial Advice (NFA). Do Your Own Research (DYOR).
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