Bitcoin Stagnates as September FOMC Meeting Looms with Interest Rates on Hold
When former Federal Reserve governor Kevin Warsh was nominated to chair the Fed in January 2026, crypto markets reacted negatively. The announcement led to a market rout, with Bitcoin falling by 7% from $84.6k to $78.7k.
The wider crypto market recorded its highest liquidations for 2026, with nearly $2.4 billion in long positions liquidated compared to just $154.7 million in short positions.
The Fed's decision-making process has a significant impact on the crypto market. The Federal Open Market Committee (FOMC) sets the U.S. national monetary policy, including interest rates and quantitative easing or tightening.
With the next FOMC meeting scheduled for September 15-16, there is a 65.2% probability of keeping interest rates between 3.50%-3.75%, while a 34.8% chance of raising them to 3.75%-4.00%.