The Bitcoin market is experiencing heightened volatility as the Federal Reserve’s recent policy decisions impact trading dynamics. Key factors influencing prices include uncertainty surrounding December rate cuts and the potential for institutional inflows into crypto assets. Jerome Powell, President of the Federal Reserve, indicated that a December rate cut remains uncertain, triggering selling pressure across risk assets, including Bitcoin. The market is currently displaying volatility in a range between $110,000-$120,000 as traders anticipate further market fluctuations based on the Fed’s decisions and anticipated policy shifts. Institutional investors have been pouring money into spot ETFs this month, injecting a historic influx of $3.5 billion into the Bitcoin market, showcasing a surge in confidence from institutional players. Despite recent liquidations amounting to $19 billion this October, Bitcoin still shows potential for rallies as historical data suggests volatility tends to increase following Fed rate cuts and technical analysts predict a year-end target of $140,000. On-chain metrics are indicating high sell-side liquidity between $111,000–$117,000, suggesting the possibility of short squeezes if this threshold is breached. Traders closely observe historical patterns of Fed rate cuts leading to market rallies but remain cautious about potential downside risks at $104,000 if sentiment takes a downturn.