Bitcoin Volatility Nears 4% Amid Market Uncertainty
The volatility of Bitcoin reached 3.6% on March 19 — its highest level since August 2024, according to data from CoinGlass.
This spike in volatility highlights increasing uncertainty in the markets, driven by economic ambiguity in the United States, according to Uldis Tearudklans, chief revenue officer at UK-based crypto exchange Paybis.
“The policy landscape is becoming more complex with the emergence of Elon Musk’s Department of Government Efficiency,” Tearudklans said, adding:
“While the initiative to reduce government spending has bipartisan backing, the broader economic effects — particularly on employment and consumer demand — remain difficult to quantify.”
As of March 19, the Department of Government Efficiency claims to have saved the U.S. government approximately $115 billion.
These savings reportedly stem from staff cuts, selling off assets, canceling grants, and trimming regulatory costs.
Tearudklans noted that if government spending continues to tighten while interest rates remain stable or begin to decline, it could result in a liquidity squeeze that offsets the expected benefits of future rate cuts.
On March 19, the Federal Open Market Committee decided to keep interest rates steady, though it left room for potentially two rate cuts later in 2025.
Bitcoin has continued to show significant price swings since U.S. President Donald Trump took office in January 2025.
After hitting a peak of $109,590 on Jan. 20, BTC dropped by 30% to a low of $77,041 during the week of March 9–15.
This pullback has increased selling pressure, especially among short-term investors facing unrealized losses.
However, there are signs of a slight rebound, with Bitcoin trading around $84,000 at the time of writing.
Tearudklans explained that the current level of volatility reflects market participants weighing a wide range of possible outcomes, including both spending cuts and the potential for stable or easing rates.
“This creates a complex feedback loop where reduced government spending could limit growth, potentially forcing the Fed to maintain a cautious stance or even delay future rate cuts.”
He also suggested that Bitcoin’s price movements may be partially influenced by misaligned fiscal and monetary policy:
“While the Fed’s rate decision offers short-term clarity, the broader fiscal outlook introduces the risk of asymmetric market responses, reinforcing Bitcoin’s sensitivity to macroeconomic cycles and liquidity shifts.”
Bitcoin’s recent volatility also coincides with President Trump’s increasing alignment with the crypto sector.
On March 7, he signed an executive order to establish a strategic reserve of Bitcoin and digital assets in the U.S.
On March 20, he addressed the 2025 Digital Asset Summit, stating that the U.S. would become a “Bitcoin superpower.”
However, Trump’s discussions around tariffs and escalating geopolitical tensions are adding volatility to broader financial markets, including the crypto space.
Sources:
https://cointelegraph.com/news/bitcoin-volatility-hits-3-6-heightened-market-uncertainty
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