Bitcoin's price volatility exceeded 30% within 24 hours after the Federal Reserve announced a pause on interest rate hikes, driven by market reactions and speculative trading. The pause signaled a shift from tightening monetary policy, boosting risk-on sentiment and prompting investors to pile into volatile assets like Bitcoin. CME futures data shows a surge in open interest, with traders increasing short positions by 5,500 BTC in the prior two days, reflecting heightened caution. However, as Bitcoin rallied, short liquidations spiked, amplifying price swings. Low futures premiums, at a 9-month low, suggest bearish positioning clashed with sudden bullish momentum, fueling volatility. This interplay of macroeconomic cues, leveraged trading, and rapid sentiment shifts explains the dramatic 24-hour price movement.