Bitcoin's price has experienced fluctuations due to uncertainty surrounding the Federal Reserve's policy direction. Market expectations of a 25-basis-point rate cut at the Fed's October meeting, coupled with Chair Powell's 'flexible dovish' stance, have initially driven Bitcoin to $126,000. However, recent corrections have brought the price down to $121,000, reflecting a market shift from optimism to caution. This consolidation phase is expected to persist until further economic data and Fed actions provide clearer guidance.