{"id":125499,"date":"2025-03-20T21:15:54","date_gmt":"2025-03-20T21:15:54","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=125499"},"modified":"2025-03-20T21:15:54","modified_gmt":"2025-03-20T21:15:54","slug":"bitcoin-volatility-hits-3-6-amid-heightened-market-uncertainty","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=125499","title":{"rendered":"Bitcoin volatility hits 3.6% amid heightened market uncertainty"},"content":{"rendered":"<p>Source: Cointelegraph.com NewsBitcoin (BTC) volatility climbed to 3.6% on March 19 \u2014 the highest point since August 2024,  according to data from CoinGlass.<br \/>\nThe volatility reflects heightened market uncertainty amid structural unknowns in the US economy, according to Uldis Tearudklans, chief revenue officer at UK-based cryptocurrency exchange Paybis.<br \/>\n\u201cThe policy landscape is becoming more complex with the emergence of Elon Musk\u2019s Department of Government Efficiency,\u201d Tearudklans said. \u201cWhile the initiative to reduce government spending has bipartisan backing, the broader economic effects \u2014 particularly on employment and consumer demand \u2014 remain difficult to quantify.\u201d<br \/>\nThe Department of Government Efficiency claims to have generated an estimated savings of $115 billion for the US government as of March 19. The alleged savings include workforce reductions, asset sales, grant cancellations, and regulatory savings.<br \/>\nBitcoin volatility history from March 2013 to March 2025. Source: CoinGlassAccording to Tearudklans, if fiscal tightening proceeds alongside stable or gradually declining interest rates, the resulting liquidity contraction \u201ccould create a mismatch in policy direction, limiting the intended stimulative effect of future rate cuts.\u201d<br \/>\nOn March 19, the Federal Open Market Committee announced that it would leave interest rates unchanged for the time being, although it left open the possibility for two more rate cuts in 2025.<br \/>\nRelated: $77K likely the Bitcoin bottom as QT is \u2018effectively dead\u2019 \u2014 Analysts<br \/>\nBitcoin volatility on display since Trump\u2019s inauguration<br \/>\nBitcoin\u2019s volatility is well-known and has been on full display since US President Donald Trump was inaugurated in January 2025.<br \/>\nSince reaching a high of $109,590 on Jan. 20, BTC price suffered a 30% retracement to a low of $77,041 during the week of March 9-15. Selling pressure has increased as more short-term buyers currently find themselves down on their investments, though demand may be slightly returning. The cryptocurrency price bounced up to around $84,000 at this time of writing.<br \/>\nTearudklans told Cointelegraph that the elevated volatility indicates that traders are pricing in divergent outcomes, including the possibility of fiscal contraction alongside stable or easing interest rates.<br \/>\n\u201cThis 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.\u201d<br \/>\nBitcoin\u2019s price action may also be tied to policy misalignment, he added. \u201cWhile the Fed\u2019s rate decision offers short-term clarity, the broader fiscal outlook introduces the risk of asymmetric market responses, reinforcing Bitcoin\u2019s sensitivity to macroeconomic cycles and liquidity shifts.\u201d<br \/>\nThe volatility of Bitcoin comes as President Trump has expressed overtures to the crypto community. On March 7, he signed an executive order to create a strategic Bitcoin reserve and digital asset stockpile in the United States. On March 20, he spoke at the 2025 Digital Asset Summit, claiming the US will be a \u201cBitcoin superpower.\u201d<br \/>\nHowever, Trump\u2019s talk of tariffs and rising geopolitical tension are affecting the financial markets as a whole, including crypto.<br \/>\nMagazine: X Hall of Flame, Benjamin Cowen: Bitcoin dominance will fall in 2025<a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-volatility-hits-3-6-heightened-market-uncertainty?utm_source=rss_feed&amp;utm_medium=rss&amp;utm_campaign=rss_partner_inbound\" target=\"_blank\" class=\"feedzy-rss-link-icon\" rel=\"noopener\">Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Source: Cointelegraph.com NewsBitcoin (BTC) volatility climbed to 3.6% on March 19 \u2014 the highest point since August 2024, according to data from CoinGlass. The volatility reflects heightened market uncertainty amid&hellip; <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125499"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=125499"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/125499\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=125499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=125499"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=125499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}