Short the dip and buy the rip? What FOMC outcomes reveal about Bitcoin price action

Analysis of Bitcoin's price action around seven FOMC meetings in 2025 indicates that macroeconomic expectations are frequently priced in beforehand, often overshadowing the actual policy decision. Historically, BTC has tended to sell off after most FOMC events, even during rate-cut cycles. Key structural drivers include overleveraged positioning (indicated by rising funding rates and open interest) before meetings, which limits marginal buying power post-announcement. Rate cuts, such as the 25 basis point cuts in September and October, resulted in the largest seven-day drawdowns (-6.9% and -8.0%, respectively), suggesting the easing cycle was already priced in, creating vulnerability. Ultimately, FOMC events act more as reset points where overstretched positioning unwinds rather than as primary directional catalysts, regardless of whether the outcome is dovish.

(Source：Cointelegraph)