Bitcoin investors are bracing for another potential rollercoaster ride as the Federal Open Market Committee (FOMC) meeting approaches on June 12th, 2024. Historically, these meetings have been marked by significant Bitcoin price volatility, followed by impressive rallies.
FOMC Meetings and the Bitcoin Price Rollercoaster
The FOMC is a powerful committee within the Federal Reserve System responsible for setting interest rates and guiding monetary policy. These events, held eight times a year, have a significant impact on the broader financial landscape, including the cryptocurrency market.
Looking at recent history, a fascinating pattern emerges. Leading up to FOMC meetings where interest rates were held steady, Bitcoin’s price typically dipped. Here’s a breakdown:
- December 13th, 2023: Pre-meeting drop of 8.76%, followed by a 22.07% surge after the announcement.
- January 31st, 2024: Pre-meeting dip of 4.55%, followed by a 26.34% post-announcement increase.
- March 20th, 2024: Pre-meeting dip of 11.82%, followed by a post-announcement rise of 18.09%.
- May 1st, 2024: Pre-meeting dip of 12.69%, followed by a post-announcement rise of 15.95%.
The June 12th FOMC Meeting: A Repeat of History?
As of today, Bitcoin has already experienced an 8.25% price drop in anticipation of the upcoming June 12th FOMC meeting. This aligns with the historical pattern observed before previous rate-holding decisions.
Also Read: Bitcoin Crash Incoming? Analyst Predicts 33% Plunge After 16-Month Bull Run (Target: $47,943)
Fed Rate Cut Urged by Senators: Will it Impact Bitcoin?
Adding another layer of intrigue, Senators Elizabeth Warren, Jacky Rosen, and John Hickenlooper have recently urged the Fed to consider a rate cut to combat inflation. This unexpected variable throws a curveball at potential predictions.
What Does This Mean for Investors?
While the future remains uncertain, historical trends suggest a potential rebound in Bitcoin’s price after the FOMC announcement, regardless of the Fed’s decision. This knowledge can empower investors to make informed choices, navigating the volatility surrounding major economic events.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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