FOMC stands for the Federal Open Market Committee, the monetary policy-setting body of the United States Federal Reserve. Eight times per year, the FOMC meets to review economic conditions and vote on interest rate decisions — one of the most market-moving events in global finance. These meetings and the subsequent rate announcements have significant effects on all financial markets, including cryptocurrency.
When the FOMC raises interest rates, risk assets like crypto typically sell off as investors move capital into higher-yielding, lower-risk instruments (such as US Treasury bonds). When rates are cut or held low, liquidity increases and flows back into risk assets like Bitcoin and Ethereum, often driving price appreciation.
FOMC meetings are closely tracked events in the crypto trading calendar. The “Fed Chair press conference” following the rate decision often creates significant volatility. Traders watch for “hawkish” language (suggesting future rate hikes — bearish for crypto) or “dovish” language (suggesting rate cuts — bullish for crypto). The announcement typically triggers sharp, immediate price moves across all crypto assets.
Example: In March 2022, the FOMC began its most aggressive rate-hiking cycle in 40 years. Bitcoin fell from $47,000 to $16,000 over the following 9 months as tightening monetary policy drained liquidity from risk assets.
Learn more: Federal Reserve — FOMC Meeting Schedule
