NEWSLETTER
bitcoin's volatility (btc) rose to 3.6% on March 19, the highest point since August 2024, according to the Coinglás data.
Volatility reflects the greatest uncertainty in the market amid structural unknowns in the economy of the United States, according to Uldis Tearudklans, director of income of cryptocurrency exchange payments based in the United Kingdom.
“The policy panorama is becoming more complex with the appearance of the Efficient Efficiency Department of Elon Musk,” Tearudklans said. “While the initiative to reduce government spending has a bipartisan support, the broader economic effects, particularly on the employment and demand of the consumer, are still difficult to quantify.”
The Government Efficiency Department claims having generated an estimated savings of $ 115 billion for the United States government as of March 19. The claimed savings include reductions of the workforce, sales of assets, cancellations of regulatory subsidies and savings.
bitcoin volatility history from March 2013 to March 2025. Source: Horn
According to Tearudklans, if the fiscal tightening progresses together with the stable interest rates or gradually decreasing, the resulting liquidity contraction “could create a mismatch in the direction of the policy, which limits the planned stimulating effect of the cuts of future fees.”
On March 19, the Federal Open Market Committee announced that it would leave interest rates without changes at the moment, although it left the possibility of two more rates cuts in 2025.
Related: $ 77K probably the bitcoin fund since QT is 'indeed dead' – analysts
bitcoin volatility on display from Trump's inauguration
bitcoin's volatility is well known and has been on display since the president of the United States, Donald Trump, was inaugurated in January 2025.
Since it reached a maximum of $ 109,590 on January 20, btc Price suffered a 30% setback to a minimum of $ 77,041 during the week of March 9 to 15. The sales pressure has increased as more short -term buyers are currently in their investments, although demand can return slightly. The price of cryptocurrencies bounced in around $ 84,000 at this time of writing.
Tearudklans told Coinlegraph that high volatility indicates that merchants are prices in divergent results, including the possibility of fiscal contraction along with stable or relieved interest rates.
“This creates a complex feedback cycle where reduced government expenditure could limit growth, which could force Fed to maintain a cautious posture or even delay the cuts of future rates.”
bitcoin's price action may also be linked to policy misalignment, he added. “While the Fed rate decision offers short -term clarity, the broader fiscal perspective introduces the risk of asymmetric market responses, reinforcing bitcoin's sensitivity to macroeconomic cycles and liquidity changes.”
bitcoin's volatility occurs when Trump has expressed obese to the cryptographic community. On March 7, he signed an executive order to create a strategic bitcoin reserve and a digital asset storage in the United States. On March 20, he spoke at the 2025 digital asset summit, claiming that the United States will be a “bitcoin superpower.”
However, Trump's talk about tariffs and the increase in geopolitical tension are affecting financial markets as a whole, including cryptography.
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