Bitcoin Holds Steady Post-FOMC as Lawmakers Call for SEC to Open 401(k) Crypto Access

TLDR:

• Bitcoin steadies after a sharp FOMC-driven decline, forming higher lows that signal early stabilization.
• Chart data shows recurring FOMC volatility, but current downside pressure appears milder than prior meetings.
• Large holders moved 36,500 BTC this month, adding a new layer of activity during the current market slowdown.
• Congress urges the SEC to permit crypto in 401(k)s, placing nearly $9T in retirement capital near potential BTC exposure.

Bitcoin is stabilizing after a sharp post-FOMC decline that initially pushed the asset lower in line with past monetary policy reactions. 

The market absorbed the first wave of selling as the price formed a short-term base, signaling reduced downside momentum. Traders are closely monitoring price behavior as the asset moves into a more measured phase.

Although the decline echoed earlier FOMC-driven volatility, the current structure differs from previous episodes. 

The market is beginning to show steadier conditions, creating early signs that selling pressure may be easing.

Post-FOMC Volatility Fades as Market Forms a Short-Term Base

Bitcoin moved lower immediately following the FOMC decision, continuing a pattern that Crypto Rover described as consistent with several previous meetings. 

His chart indicated that prior FOMC events triggered swift drawdowns, including retracements that reached nearly 29 percent in one instance. These reactions reinforced Bitcoin’s sensitivity to liquidity expectations.

This time, however, the decline is showing signs of moderation. Long lower wicks on recent candles suggest buyers are stepping in during dips. 

The price is also forming higher lows on shorter timeframes, which indicates early attempts to stabilize. Even with this shift, analysts note that the market still requires additional daily closes to confirm whether a recovery is emerging.

For now, Bitcoin trades within a defined range as resistance remains firm. Market participants are waiting for a decisive breakout to determine whether the asset is preparing for a more constructive phase or pausing before another downward move.

Whale Selling Continues as Congress Pushes for 401(k) Crypto Access

Ali reported that large Bitcoin holders have sold or redistributed 36,500 BTC since the start of the month. 

This movement adds another layer to market conditions, as major transfers often influence short-term sentiment. The timing aligns with increased volatility around the FOMC announcement.

Meanwhile, a new development in Washington is drawing attention. CryptosRus shared that members of Congress have pressed SEC Chair Paul Atkins to allow Americans to hold Bitcoin and other digital assets in their 401(k) retirement plans. 

The letter argues that enabling crypto access at the retirement level would require plan sponsors, advisors, and asset managers to create dedicated digital asset strategies.

The request places nearly $9 trillion in retirement capital near potential exposure to Bitcoin. While no decision has been made, the appeal signals growing interest in integrating crypto into long-term investment structures. 

As the policy debate continues, the market remains focused on Bitcoin’s stabilization pattern and the next directional move.

The post Bitcoin Holds Steady Post-FOMC as Lawmakers Call for SEC to Open 401(k) Crypto Access appeared first on Blockonomi.