Bitcoin Tests $65K Post-Fed: Historical Data Points to Sharp 9% Volatility
Following the Fed’s decision to keep interest rates steady, the price of Bitcoin (BTC) tested the $65,000 level but quickly retreated to the $63,500 range.
The cryptocurrency market delivered a mixed reaction to the US Federal Reserve’s (Fed) latest interest rate decision, prompting investors to examine similar historical scenarios. In an environment where prediction markets priced in a 25% chance of a rate hike, keeping rates unchanged initially created a positive atmosphere for Bitcoin (BTC), but this momentum was short-lived. According to Santiment data, after reaching the $65,000 threshold, the leading cryptocurrency has currently pulled back to the $63,500 levels.
Data shared by Santiment Intelligence reveals that Bitcoin does not always react the same way following Fed interest rate decisions. For example, during the last meeting under Powell on April 29, keeping rates steady allowed Bitcoin to gain 9% in value within a week, reaching the $82,500 level as liquidity concerns eased. However, the opposite occurred during the first meeting led by Warsh on June 17; although unchanged rates initially appeared bullish, the price lost 9% in value within two weeks as investors had already “bought the rumor.”
Critical Threshold for Bitcoin and CLARITY Act Expectations
Current market movements signal that a “sell the news” strategy, similar to the downward cycle in June, may be in play. While the lack of a rate hike prevented a macroeconomic shock, Bitcoin (BTC) needs a new catalyst to launch a sustained rally. Santiment analysts emphasize that the clarity provided by the legislative framework known as the CLARITY Act will be decisive at this point.
If this regulation meets expectations, Bitcoin could regain upward momentum as risk appetite increases. However, continued uncertainty in legal processes could keep the price under pressure for some time. In this volatile post-Fed environment, investors are closely monitoring the potential for a 9% counter-move suggested by historical data, along with shifts in social volume metrics.