Bitcoin Is About to Test the Adage ‘Don’t Fight the Fed’

Bitcoin to lose momentum because of FOMC meeting, Arcane says
Investors wait to see if Powell pours cold water on risk rally

WATCH: Coinshares CEO Mognetti discusses possible takeover targets, how the Fed’s rate hikes can impact Bitcoin, and being transparent.Source: Bloomberg

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By Isabelle Lee and Vildana Hajric

January 31, 2023 at 8:21 PM UTC

Updated on

February 1, 2023 at 2:46 PM UTC

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This year’s 40% rally in Bitcoin is heading toward a potentially big test in the shape of the upcoming Federal Reserve policy decision.

Crypto, stocks and bonds have jumped in the new year on expectations of a Fed pivot to slower interest-rate hikes and eventual cuts as high inflation cools. While the Fed appears set to downshift to a quarter-point increase Wednesday, Chair Jerome Powell may stress policy will stay restrictive to damp prices.