Cavitation bubbles are used in medicine as a mechanism to generate shock waves. The study of cavitation bubble dynamics plays a crucial role in understanding and utilizing such phenomena for practical applications and purposes. Since the lifetime of cavitation bubbles is in the range of hundreds of microseconds and the radii are in the millimeter range, the observation of bubble dynamics requires complicated and expensive equipment. High-speed cameras or other optical techniques require transparent containers or at least a transparent optical window to access the region. Fiber optic probe tips are commonly used to monitor water pressure, density, and temperature, but no study has used a fiber tip sensor in an interferometric setup to measure cavitation bubble dynamics. We present how a fiber tip sensor system, originally intended as a hydrophone, can be used to track the expansion and contraction of cavitation bubbles. The measurement is based on interference between light reflected from the fiber tip surface and light reflected from the cavitation bubble itself. We used a continuous-wave laser to generate cavitation bubbles and a high-speed camera to validate our measurements. The shock wave resulting from the collapse of a bubble can also be measured with a delay in the order of 1 µs since the probe tip can be placed less than 1 mm away from the origin of the cavitation bubble. By combining the information on the bubble expansion velocity and the time of bubble collapse, the lifetime of a bubble can be estimated. The bubble expansion velocity is measured with a spatial resolution of 488 nm, half the wavelength of the measuring laser. Our results demonstrate an alternative method for monitoring bubble dynamics without the need for expensive equipment. The method is flexible and can be adapted to different environmental conditions, opening up new perspectives in many application areas.