What to Anticipate from the FOMC Gathering: Implications for Bitcoin and Risk Assets
What can you anticipate from the upcoming FOMC meeting this week? The Federal Open Trading market Committee (FOMC) convenes on September 16–17, with traders heavily favoring a 25-basis-point reduction in rates.
The CME FedWatch Tool indicates there’s a 92% likelihood of a cut, nearly guaranteeing the outcome. This expectation is supported by declining inflation and softening labor statistics. TLDW: The FOMC meeting is likely to lead to lower interest rates, essentially activating the money printers. Anticipate a rise in long bond yields!
“The chance of a quarter-point reduction is almost a certainty,” analysts at CME remarked, noting CPI at 2.9% year-on-year and a decrease in PPI to below 3%.
This will signal the Fed’s first significant shift since the hiking cycle commenced in 2022, when
” target=”_blank” rel=”noopener nofollow”>crypto was historically low. The markets are poised for Powell’s address following the meeting to verify if further cuts could be anticipated in October or December.
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PPI and CPI have decreased compared to the previous year but remain higher than the Fed’s 2% goal. CPI registered at 2.9% in August, while Core CPI was at 3.1%, both high yet declining. PPI reflected a comparable trend with headlines at 3.3% and core at 2.8%.
The Fed is navigating a dilemma of inflation, which is not yet “conquered,” alongside diminishing job growth. The jobs report for August revealed monthly gains falling below 100K for the first time since COVID, with June reporting a drop of -13K.
US blue-collar job growth has completely stagnated, hitting the lowest level since the onset of the pandemic—manufacturing is currently losing jobs at a rapid pace, and growth in construction/transportation has slowed to a crawl pic.twitter.com/auNndcxL3u
— Joey Politano 🏳️🌈 (@JosephPolitano) September 5, 2025
Historically, rate reductions have led to a weakened dollar and increased market demand for scarce assets like Bitcoin. The scenario in 2025 appears similarly poised. Spot BTC ETFs attracted $2.3 billion last week, with Fidelity’s Wise Origin Fund and BlackRock’s IBIT leading the charge. This marked the most substantial weekly influx in two months, according to Farside Investors.
Institutions are also adding to their holdings. K33 Research reports that public companies now control 950,000 BTC valued at $110 billion, which is nearly double the volume held in early 2024.
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What Technical Levels Must BTC Maintain Before the Fed Meeting?
On the charts, BTC is trading around $115,000, slightly above its 50-day EMA near $114,500. Analysts emphasize that this level is crucial.
“The key will be whether the markets react negatively to the news when a 25bp cut is declared, considering prices are already anticipated,” remarked investor Mark Cullen on X.
$BTC needs to hold $115,100, if it does, next target sits around $136,900. pic.twitter.com/fxBW7zCgpG
— Ak47♛ (@HolaItsAk47) September 14, 2025
A significant drop could confine BTC between $110K and $115K, whereas maintaining this level sets the stage for a challenge at resistance around $117K–$120K, with all-time highs near $124.5K back in view.
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Trading market Market fluidity Context: Why This Moment Is Crucial
CoinGlass data reveals that Bitcoin futures open interest has risen by 15% since early September. Meanwhile, the total crypto market cap of crypto hovers around $4.05 trillion, which is below recent peaks but remains stable in a month typically challenging for BTC.
The next steps depend on Powell. The rate cut is already factored in; what’s significant is the tone. A dovish outlook could ignite a Q4 rally, while a cautious stance would mean testing those $100K lows.
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Key Takeaways
- What can you anticipate from the upcoming FOMC meeting this week? The Federal Open Crypto market Committee (FOMC) is set to meet on September 16–17 this week.
- PPI and CPI have diminished compared to the previous year but remain above the Fed’s 2% target.
The post What To Expect From FOMC Meeting: What It Means for Bitcoin and Risk Assets first appeared on 99Bitcoins.
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