BTC’s rally runs into 'sell the news' risk ahead of FOMC meeting
Bitcoin's recent rally faces potential correction as the FOMC meeting approaches, historically triggering short-term bearish trends.Summary
Bitcoin has experienced strong momentum, trading above $74,000, but data from Two Prime suggests a potential “sell the news” scenario ahead of the March FOMC meeting. Historically, FOMC meetings have often led to short-term price declines for BTC, regardless of the Fed’s ultimate decision. In 2025, Bitcoin saw negative returns following seven of eight FOMC meetings. The market currently anticipates the Federal Reserve will hold rates steady, with limited expectations for rate cuts this year. Macroeconomic factors, including escalating Middle East conflict and high oil prices, add complexity, potentially limiting the Fed’s ability to ease policy. This combination of factors suggests a heightened risk of a sell-off following the FOMC meeting, despite Bitcoin’s current buoyant state. Current market indicators show reduced trading volume and cautious positioning, with traders awaiting clearer signals.
(Source：CoinDesk)