Bitcoin pulled back from $79,500 as FOMC-driven uncertainty fed a sharp deleveraging wave across crypto markets. The source material says BTC dropped nearly 30% between the turn of January and early February, while open interest in Bitcoin futures fell from $61 billion to $49 billion in a single week. Over that stretch, liquidations in BTC derivatives reached roughly $2.5 billion, and the broader crypto market saw about $4.5 billion wiped out.
Liquidity stress returned before the Fed event
The article says Bitcoin’s response to FOMC meetings over the past two years has been shaped by more than rate decisions alone. Liquidity conditions and leverage have also driven price swings. Dutch analyst Michael van de Poppe said these pullbacks often show up before the meeting itself, when markets remain uneasy about incoming Fed decisions.
Van de Poppe’s view is that BTC could hold its current range in the near term as long as it stays above $73,000. That level stands out as a near-term line the market is watching closely. Volatility, though, has not disappeared.
Institutional accumulation and ETF inflows cushion the market
Even with short-term caution still visible, institutional demand has continued to offer support. According to the source, Strategy increased its Bitcoin holdings during 2026 from 672,497 BTC at the start of the year to 818,334 BTC. That amounts to an addition of 145,837 BTC this year. The article adds that part of those purchases may have been financed through equity-linked securities used to strengthen working capital.
Spot Bitcoin ETFs have also recorded stronger net inflows. Around $3.5 billion in fresh capital entered those products over the last two months. In the article’s framing, that steady ETF demand points to firmer confidence even while short-term price action remains unstable.
Support around $60,000 to $70,000 remains in focus
On the price chart, Bitcoin has repeatedly built a base near $60,000, $65,000, and $70,000 since March. Selling pressure has increased at times, but long-term positioning and continued institutional accumulation have helped prevent deeper declines. The article says major macro events such as FOMC meetings can weaken risk appetite for a period, yet underlying demand has continued to provide support.
The source also points to a recurring pattern: Bitcoin has often rebounded after FOMC-linked corrections, with capital inflows and growing participation from large investors helping the recovery. Traders are still focused on upcoming central bank meetings and shifts in liquidity, but persistent institutional buying and ETF inflows remain the main supports highlighted in the report.