Bitcoin's price sensitivity to Federal Reserve interest rate decisions appears to be increasing. Historically, rate hikes dampen risk appetite, pushing investors toward safer assets like bonds, which often suppresses Bitcoin's price. Conversely, rate cuts boost liquidity, driving capital into riskier assets like cryptocurrencies, as seen in Bitcoin's surge after the Fed's 50-basis-point cut in September 2024. Recent data shows Bitcoin's volatility spiking around FOMC meetings, with a 5.7% drop following a 25-basis-point cut in December 2024. The growing correlation with equity markets and institutional adoption via Bitcoin ETFs further amplifies this sensitivity. As the Fed navigates inflation and economic growth, its hawkish or dovish signals increasingly sway crypto markets. Investors now closely monitor Fed Chair Powell’s statements, with Bitcoin reacting sharply to policy shifts. This heightened responsiveness reflects Bitcoin's integration into broader financial markets