Bitcoin Drops After FOMC as Stop-Loss Selling, Not Structural Exit, Drives Pullback

Bitcoin fell after the Federal Open Market Committee meeting, with short-term volatility picking up.

Cointelegraph reported on April 29 that Bitcoin came under pressure after the FOMC confirmed a decision to hold the benchmark interest rate in a 3.5% to 3.75% range. The Federal Reserve kept its goals of maximum employment and 2% inflation while emphasizing policy flexibility amid uncertainty, including tensions in the Middle East.

The decision was in line with market expectations. Even so, Bitcoin extended its losses after Fed Chair Jerome Powell's press conference. It fell as low as $74,937 intraday, dropping below its 20-day moving average of about $75,664.

The decline appeared to reflect short-term position unwinding rather than structural selling. Shubh Varma, chief executive officer of Hyblock, described it as a typical post-FOMC "sell the news" reaction. Bitcoin quickly recovered to pre-announcement levels, indicating underlying demand remained firm.

Varma added that the global bid ratio surged to 0.3 while open interest declined during the price drop. In his view, that points to liquidations and stop-loss selling rather than conviction-driven selling.

On-chain data also signaled near-term weakness. In a recent report, Glassnode said Bitcoin remains trapped below the market's average price level and that short-term upside momentum weakened after it failed to break above $79,000.

Glassnode also said increased profit-taking by short-term holders and a shift to net-short positioning in the futures market are weakening short-term upside momentum.

Still, institutional demand continues to support prices. Glassnode said inflows into spot exchange-traded funds and rising CME open interest indicate a "thick accumulation zone" has formed in the $65,000 to $70,000 range.

Cointelegraph said Bitcoin's near-term direction will depend on whether it can reclaim its 20-day moving average. If it fails to recover that level, it could test the bottom of the range that has formed over about four months.