Bitcoin Vs. FOMC: What Really Matters

Fed Actions and Financial Conditions

There is a FOMC meeting this week, and naturally, Bitcoin investors are paying close attention. Not for the outcome of the meeting, which will likely hold rates steady with a very high probability (99%).

They're watching for observations about future Fed actions, much of which will be delivered during the press conference that concludes the meeting.

The question is: do these FOMC rate decisions really influence Bitcoin significantly? And if not what is the actual influence of the Fed's monetary policy at any given time?

Let's talk about what really matters for Bitcoin.

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Bitcoin Vs. FOMC, What Really Matters

The Takeaway

While FOMC rate decisions briefly impact Bitcoin's price, the broader trend in financial conditions drives Bitcoin's long-term performance.

Currently, financial conditions are very accommodative despite minimal Fed action, creating a potential risk if the Fed maintains its hawkish stance and delays expected rate cuts.

Short Term Impact of Rate Decisions