Bitcoin's initial price reaction to FOMC news is often a 'fakeout' or the 'wrong' reaction, used to liquidate traders. If Bitcoin dumps initially, it is predicted to rally later; if it rallies initially, it is predicted to dump later, eventually moving in the opposite direction of the first reaction.
"Usually when FOMC starts, we get some type of reaction by the market. And usually that first reaction is like the wrong one, right? So if it dumps, then normally it'll dump and then Bitcoin will rally or if it rallies into it, on sort of the first FOMC news, then it'll probably dump later. So watch for that initial reaction because usually the initial reaction is the wrong reaction and it's just to kind of like liquidate people and to clear the way to go the actual direction that it wants to go."
