Bitcoin Price May Drop 10% After FOMC & Fed Rate Cut Reaction

Bitcoin price fell another 2.2% today. The drop followed the Fed rate cut announcement on Wednesday. Traders reacted with a sell-the-news response, dampening market sentiment.

Market analysts view this as typical post-FOMC behaviour of BTC. Some experts believe that BTC can drop as much as 10% based on the historical charts.

Bitcoin Price Shows Typical Behaviour After FOMC Event

Crypto analyst Merlijn The Trader highlighted a recurring pattern in Bitcoin’s market behaviour around Federal Open Market Committee (FOMC) meetings. The analyst pointed out that each meeting this year has preceded a correction.

According to the analyst, the Bitcoin price has dropped by 10%, 6%, and 8% following previous FOMC announcements. This trend highlights how monetary policy events have consistently impacted crypto market sentiment.

He added that while “the setup is the same” ahead of today’s meeting, “the outcome doesn’t have to be.” He also suggested that the traders remain cautious but flexible in their positioning. Another 10% drop in the Bitcoin price could take it below the $100K level from here.

Bitcoin Price Crash Ahead If This Support Is Gone

Analyst Crypto Patel noted that the Bitcoin price has completed a bearish retest at the $116,000 resistance zone. Thus, he maintains a bearish outlook as long as the price remains below the $116,000–$117,000 range.

The analyst warns that repeated rejection at this level may lead to a correction. Price targets could drop to $105,000, $93,000, or even $76,000.

However, Patel added that a confirmed breakout above $117,000 would invalidate the current bearish structure. This could also open the door for an extended rally toward $150,000 or higher.

Crypto Patel noted a sharp decline in demand for spot Bitcoin ETFs. The 7-day average net flow dropped to -281 BTC, marking one of the lowest levels since April.

The negative flow indicates that U.S. spot Bitcoin ETFs have shifted into net selling territory. Additionally, it reflects a cooling appetite among investors following months of steady inflows. It is negatively impacting the Bitcoin price..

Analysts note that this trend could signal short-term profit-taking or a pause in institutional accumulation. Farside Investors reports that the spot Bitcoin ETFs across all US issuers registered a massive $470 million in net outflows.

Fidelity’s FBTC led the most outflows at $164 million, followed by Ark Invest’s ARKB at $143 million

Jerome Powell Hints At Cautious Take Ahead for Fed Rate Cuts

The decline in the Bitcoin price today has shaken the broader cryptocurrency market. Over $800 million in liquidations occurred in the past 24 hours.

The Fed rate cut lowered the benchmark interest rate by 25 basis points. The new target range is now 3.75% to 4.00%. The market widely anticipated this move.

The Fed announced that it will terminate its balance sheet reduction program, also known as quantitative tightening, on December 1. Although the US Fed implemented another interest rate cut, Powell cautioned that the outlook for future policy moves remains uncertain.

Analysts note that the central bank is increasingly divided over the pace and extent of easing. Signs of labour market weakness are starting to emerge. As a result, market observers expect the Fed to keep cutting rates. More easing could follow in the coming months.