FOMC Meeting Looms: Will Bitcoin Suffer Another Rate-Induced Rout?

The Federal Reserve's upcoming FOMC meeting on September 15-16 is causing concern among crypto investors. A review of Bitcoin's performance in 2026 reveals that it has consistently reacted poorly to rate decisions, with three out of five announcements triggering bearish pivots.

In January, the nomination of Kevin Warsh as Federal Reserve Chair led to a significant market rout, with Bitcoin falling by 7% from $84.6k to $78.7k and crypto markets experiencing the highest liquidations for 2026.

Warsh had previously expressed support for Bitcoin as a store of value, but his nomination was met with expectations of higher interest rates and aggressive balance-sheet reduction, leading to a sell-off in crypto markets.