Amid challenges in the US economy and claims of reduced government spending, Bitcoin reached a volatility level of 3.6% on March 19.
Bitcoin Volatility Levels
According to CoinGlass, Bitcoin's volatility reached 3.6% on March 19, the highest point since August 2024. This reflects increased market uncertainty due to structural unknowns in the US economy.
US Financial Policy
The US government claims to have saved $115 billion through workforce reductions, asset sales, grant cancellations, and regulatory savings. Despite this, the Federal Open Market Committee left interest rates unchanged, allowing for the possibility of two cuts in 2025. This could lead to a mismatch in policy direction, limiting stimulative effects.
Political Environment and Bitcoin
Since US President Donald Trump’s inauguration in January 2025, Bitcoin volatility has been evident. Bitcoin’s current price, after a 30% drop to $77,041, has rebounded to around $84,000. President Trump has shown support for the crypto community and signed an executive order to create a strategic Bitcoin reserve. However, discussions about tariffs and rising geopolitical tensions are affecting financial markets.
The current Bitcoin volatility shows how the cryptocurrency remains sensitive to macroeconomic changes and political developments. US policy innovations are playing a crucial role in market sentiment formation.
