The Federal Open Market Committee (FOMC) meets a total of eight times a year, where members of the committee review economic and financial conditions in the US, and this usually has serious implications for the crypto market. With the end of each meeting comes an announcement where the Fed chair reveals what the interest rates will be before the next meeting.
Depending on how the Fed is viewing the data, either dovish or hawkish, it could lead to either a rise in interest rates or a decline in interest rates. Sometimes, the interest rates are kept the same, and this does not usually move the financial markets much.
In the case where the Fed is hawkish, the result of the FOMC meetings usually comes with an increase in interest rates. Such conditions are usually not ideal for investors, leading to a more cautious stance. In such a case, the financial markets usually see a crash, and the crypto market often follows the same trajectory as a result.
A dovish stance, otherwise known as a bullish stance, is usually when the Fed drops interest rates. Depending on how much of a drop in basis points this is, it can be very bullish for the crypto market, as they often respond with a rally. In times like these, the crypto market also follows and is usually green as the euphoria fills the market.
This is because lower interest rates encourage crypto investments as investors are more likely to take on risk due to the low rates. Then, on the other side of this is the neutral state, where the Fed leaves interest rates the same, and the markets often maintain whatever trajectory they were on before the announcement.
When Is The Next FOMC Meeting, And Could It Affect Crypto Negatively?
According to the CME Group website, the next FOMC meeting is scheduled in a week, on April 29, 2026. As always, the meeting will last two days, followed by a press conference. These meetings are already scheduled months in advance, so they come as no surprise to the market.
One interesting thing, though, is the speculation leading up to the day of the meeting. As the FedWatch Tool shows, the expectations are that there will actually be no change in the current interest rates. For context, the current interest rate is sitting at 3.5-3.75%.
The tool shows a 99.5% chance that the Fed will not change rates, which follows the current sentiment in the market. It shows a 0% chance that interest rates will reduce, and only a 0.5% chance that there will be a hike in the interest rates. If this plays out, then it is likely that the crypto market will not see any significant change as a result of the FOMC meeting being concluded.
Featured image from Dall.E, chart from TradingView.com
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