As the Federal Reserve's interest rate hike week heats up in risk aversion, how to use GateAI to deploy countermeasures in advance?

"The Fed’s first interest rate meeting in 2026 is about to be held, and the market generally expects the possibility of policy easing to be extremely low, with a probability of only 2.8% of interest rate cuts. A trader who did not want to be named said in a statement on Gate: "FOMC meeting weeks are usually associated with high volatility and downside risks in cryptocurrencies. ”

As of January 30, 2026, the crypto market has exhibited typical risk-off characteristics. Gate market data shows that the price of Bitcoin is trading at $84,195.9, with a 24-hour drop of 5.45%; The price of Ethereum is trading at $2,807.82, down 6.55%.

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Market volatility

The Fed’s monetary policy meeting is like the sword of Damocles hanging over the head of the crypto market, and the outcome of each meeting can trigger a violent reaction from the market. Recent data shows a noticeable weakening of global risk appetite, with Bitcoin falling below the psychological $85,000 mark.

Looking back at the eight Fed interest rate meetings in 2025, it is alarming that Bitcoin has seen a significant correction after seven of them, with only one brief increase. After the most recent meeting, Bitcoin fell by 9%. This pattern sheds light on the profound impact of macro policy events on the crypto market. Even though the market may remain optimistic in anticipation of interest rate cuts before the meeting, the market reaction after the announcement tends to be negative.

Volatility Challenge

The high volatility of the crypto market is both an opportunity and a challenge. During key events like the Fed’s interest rate meeting, price volatility can reach extreme levels.

Relevant data from the prediction market suggests that market participants are clearly divided on the short-term direction of Bitcoin’s price. Some market forecasts show that some traders expect the price of Bitcoin to rebound to the range of $84,750 to $85,249.99 in the short term, but there are also considerable conservative expectations. The Ethereum market is similarly uncertain. Prediction market data shows that traders’ judgments on Ethereum’s price are concentrated in a range range of $2,940 to $3,059.99, reflecting the market’s cautious approach to Ethereum’s movements during macro events.

This environment of uncertainty presents a dual dilemma for traders: the need to avoid risk on the one hand, and the possibility of seizing trading opportunities presented by volatility on the other.

Smart Strategy

In the face of market uncertainty caused by macro events, the GateAI Expert Advisor provides traders with a new response plan. This system is not only a simple prediction tool, but also an AI-based strategy optimization engine.

GateAI’s core strength lies in its data-driven decision support capabilities. The system follows the engineering philosophy of “verify first, then generate”, prioritizing analysis based on verifiable historical data and market facts rather than providing unfounded speculation.

Over 6,100 accounts have optimized their trading strategies every week with GateAI’s intelligent backtesting feature. These users will not only be able to view historical yield data, but more importantly, they will be able to understand the performance improvements, smoother yield curves, and more controlled drawdown levels brought about by optimized parameters.

Actual combat deployment

Before and after the Fed’s interest rate meeting, traders can deploy GateAI-based response strategies in the following four steps:

Establish early warning and monitoring. Set a price volatility warning threshold in the GateAI system, and the system will automatically alert you when the price of Bitcoin or Ethereum breaks through key support or resistance levels. For example, an early warning mechanism can be set up when the price of Bitcoin fluctuates by more than 3% or Ethereum by more than 4%.

Backtest historical performance. Utilize GateAI’s intelligent backtesting feature to analyze the strategy performance under similar market conditions during the past few Fed interest rate meetings. For example, you can backtest how the strategy of reducing positions 24 hours before the interest rate meeting and gradually opening positions 12 hours after the meeting has performed in historical data.

Deploy compound policies. Combined with the characteristics of macro events, a compound strategy of “dual currency rotation + grid trading” can be deployed. For example, rotate some positions from high-risk assets to relatively stable assets before the interest rate meeting, and set up grid trading in key price ranges to capture post-meeting price rebound opportunities.

Real-time parameter adjustment. Based on GateAI’s real-time market analysis, it dynamically adjusts strategy parameters. If the market volatility indicator shows an increased probability of extreme volatility, you can expand the grid trading range or reduce the position size accordingly.

Risk management

In a highly volatile market environment, risk management is a core component of trading strategies. When using GateAI to build a trading strategy during the Fed’s interest rate meeting, pay special attention to the following risk dimensions:

The risk of structural changes in the market is the most important consideration. The crypto market has a distinctly cyclical character, and a combination of parameters that performs well in one particular market environment can completely fail in another. Therefore, it is necessary to regularly reassess the suitability of strategies to the current market environment using GateAI.

Liquidity risk is particularly prominent during macro events. Some trading pairs may experience liquidity depletion during heightened market volatility, making it difficult to close positions at the expected price. Therefore, priority should be given to mainstream trading pairs with sufficient liquidity during the strategy construction process.

The risk of over-optimization cannot be ignored either. GateAI can help identify the phenomenon of overfitting a strategy – a situation where a strategy performs well on historical data but may not be effective in real trading. With reasonable out-of-sample testing and robustness testing, a more universal combination of parameters can be screened out.

The latest data from the platform coin GT shows that as of January 30, the price of GT was $9.52, a 24-hour drop of 4.23%. Technical analysis shows that GT price support is near $9.85, with resistance around $10.01. Analysis based on current market data and historical patterns suggests that the GT price could fluctuate within a range of $9.682 to $14.523 in 2026 under a conservative scenario; In an optimistic scenario, a strong market breakout could lead to a retest of the all-time high of $25.94.

As Bitcoin price falls below $85,000 after the Fed’s interest rate meeting, the GateAI system is continuously analyzing more than 1.5 petabytes of market data streams. This intelligent system has gradually been integrated into every aspect of market display, data analysis, and risk control, becoming an indispensable part of trading infrastructure.

The market is always rewarding traders who can find a balance between certainty and uncertainty. In today’s increasingly interactive landscape of the Federal Reserve’s monetary policy and the crypto market, adaptive Expert Advisors may be more reliable than any one-sided prediction.