Bitcoin's price volatility continues as traders react to Federal Reserve policy signals and a recent $1.8 billion liquidation event. The cryptocurrency dropped to $111,800, influenced by rising Treasury yields and a stronger dollar, resulting in over 407,000 liquidations. Analysts are divided on Bitcoin's trajectory, with predictions ranging from a retracement to $107,000 to a potential breakout beyond $130,000. St. Louis Fed President Alberto Musalem and Atlanta Fed President Bostic have expressed caution regarding further rate cuts, citing inflation concerns. MEXC Research's Shawn Young highlighted the market's critical inflection point, noting that sustained closes below $112,000 could lead to a deeper pullback, while a breakout above $115,000 might target $120,000–$123,000.