The market had anticipated rate reductions by the middle of 2026, but the Fed extended that timeline today. However, the cryptocurrency market did not respond well to the meeting’s outcome, resulting in a sudden decline across the sector. Once the news dropped, BTC fell from $72,400 to under $70,000, marking a 3% move that wiped out the week’s gains in just a few hours.
Milk Road has outlined the alignment between the Bitcoin price and the macro event. During high rates, money becomes expensive as investors gather capital in bonds and cash, and risky assets like crypto get hit. Meanwhile, when rates drop, money gets cheap as capital hunts for yield. In past scenarios, this trend has been the rocket fuel for BTC.
During the 2022 hiking cycle, Bitcoin dropped below $30,000, but as cut expectations grew in late 2023, it surpassed $70,000. With the next Fed meeting scheduled for May 6 and 7, 2026, a similar move might unfold later in the year, which could trigger an upswing to the previous highs.
More BTC Whales Are Appearing
