Bullish

Bitcoin Drops After 8 FOMC Meetings; Jiang Zhuoer Predicts Short Squeeze Then Long Liquidation

2026-07-29 20:36:01

Jiang Zhuoer forecasts a volatile Bitcoin reaction to the upcoming FOMC decision, citing historical post-meeting declines and current market divergence in rate hike expectations.

Woofun AI notes that Jiang Zhuoer, founder of Lebit Mining Pool, observes significant market disagreement regarding the Federal Reserve's imminent policy decision. Data from 30-day federal fund futures indicates a 65% probability of no rate hike versus 35% for a hike, a divergence he labels as an "abnormal value" rarely seen since 2015. Jiang predicts the Fed will hold rates steady while Chair Warsh adopts a hawkish tone, triggering an initial Bitcoin price surge that liquidates short positions, followed by a decline that wipes out long holders. He highlights that Bitcoin has declined after each of the past eight FOMC meetings, citing drops ranging from 3.34% to 29.08% between July 2025 and June 2026.

WOOFUN AI

Impact Assessment · Quick Read

The prediction of a 'short squeeze then long liquidation' scenario suggests high volatility risk around the FOMC announcement. Historical data showing consistent post-meeting declines reinforces bearish sentiment, while the unusual market divergence indicates uncertainty. Traders may face elevated liquidation risks on both sides if the Fed's communication deviates from the expected dovish hold.
Generated by WOOFUN AI · For reference only, not investment advice

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