Bitcoin volatility hits 3.6%

Bitcoin's (CRYPTO:BTC) volatility surged to 3.6% on March 19, marking its highest level since August 2024, according to CoinGlass data.

This increase reflects heightened market uncertainty amid structural changes in the U.S. economy, particularly due to policy initiatives like Elon Musk's Department of Government Efficiency, which aims to reduce government spending.

Uldis Tearudklans, chief revenue officer at Paybis, noted that while these initiatives have bipartisan support, their broader economic impacts on employment and consumer demand remain uncertain.

The Department of Government Efficiency claims to have saved the U.S. government an estimated $115 billion through workforce reductions and asset sales.

The Federal Open Market Committee's decision to keep interest rates unchanged, with potential future cuts, adds to the complexity.

Tearudklans explained that fiscal tightening alongside stable or declining interest rates could create a policy mismatch, limiting the stimulative effects of future rate cuts.

Bitcoin's price has been volatile since President Trump's inauguration in January 2025, reaching a high of $109,590 before experiencing a 30% retracement to around $77,041.

Despite recent price increases to approximately $84,000, selling pressure remains high as short-term buyers face losses.

Tearudklans emphasised that the elevated volatility indicates traders are pricing in divergent outcomes, including fiscal contraction and interest rate adjustments.

This complex environment reinforces Bitcoin's sensitivity to macroeconomic cycles and liquidity shifts.

President Trump's pro-crypto stance, including plans for a strategic Bitcoin reserve, contrasts with his policies on tariffs and geopolitical tensions, which affect the broader financial markets, including crypto.

At the time of reporting, the Bitcoin (BTC) price was $84,378.31.