Bitcoin’s volatility (BTC) climbed to 3.6% on March 19 – the highest point since August 2024, according to Coinglass data.
Volatility reflects an increased uncertainty of the market in the midst of structural strangers in the American economy, according to ULDIS Tearudklans, director of the UK revenues, exchanges of cryptocurrency based on the arcs.
“The political landscape is becoming more and more complex with the emergence of the Elon Musk government department,” said Tearudklans. “Although the initiative to reduce public spending has bipartite support, broader economic effects – in particular on employment and consumer demand – remain difficult to quantify.”
The Government Ministry of Efficiency claims to have generated an estimated economy of $ 115 billion for the United States government on March 19. The savings claimed include the reductions in the workforce, asset sales, grant cancellations and regulatory savings.
Bitcoin Volatility History from March 2013 to March 2025. Source: Rinsing
According to Tearudklans, if the budgetary tightening takes place alongside stable interest rates or gradually decreasing, the liquidity contraction which results in “could create a gap in political orientation, limiting the planning stimulating effect of reductions in future rate”.
On March 19, the Federal Open Market Committee announced that it would leave the interest rates unchanged at the moment, although it has left the opening of the possibility of two additional rate drops in 2025.
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Bitcoin volatility exposed since the inauguration of Trump
Bitcoin’s volatility is well known and has been fully exposed since US President Donald Trump was inaugurated in January 2025.
Since he reached a summit of $ 109,590 on January 20, BTC Price has undergone a 30% trace to a hollow of $ 77,041 during the week from March 9 to 15. The sales pressure has increased as short -term buyers are currently found on their investments, although the demand may have returned slightly. The price of the cryptocurrency rebounded up to around $ 84,000 at the moment of writing.
Tearudklans told Cintelegraph that high volatility indicates that traders priced divergent results, including the possibility of a budgetary contraction alongside stable interest rate or relief.
“This creates a complex feedback loop where reduced public spending could limit growth, potentially forcing the Fed to maintain a prudent position or even delay the reductions in future rate.”
The action of Bitcoin prices can also be linked to policies of policies, he added. “While the FED rate decision offers short -term clarity, wider tax perspectives introduce the risk of asymmetrical market responses, strengthening the sensitivity of bitcoin to macroeconomic cycles and liquidity changes.”
Bitcoin volatility comes as Trump expressed openings to the cryptographic community. On March 7, he signed a decree to create a strategic bitcoin reserve and a stock of digital assets in the United States. On March 20, he spoke at the Digital Asset 2025 summit, saying that the United States will be a “bitcoin superpower”.
However, Trump’s speeches on prices and the rise in geopolitical tensions affect the financial markets as a whole, including the crypto.
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