Bitcoin Price Volatility Surges as Fed Rate Cut Probability Hits 91%: BTC Analysis

Bitcoin (BTC) is experiencing significant price volatility, with the cryptocurrency dropping from $123,000 to $120,000 before recovering to $121,400. Market analysts attribute this increased volatility to expectations of a Federal Reserve rate cut, with Polymarket data showing a 91% probability of a 25 basis point reduction at the upcoming October meeting. According to Nick Forster, founder of decentralized exchange Derive, implied volatilities across key timeframes have reached 30-day highs, signaling anticipation of major price movements. Meanwhile, institutional interest continues growing with State Street's Digital Assets Outlook revealing 60% of institutional investors plan to increase digital asset exposure, while regulatory developments and technical infrastructure upgrades shape the broader crypto landscape.