Recent data says that Bitcoin’s volatility hit a high point of 3.6% on March 19, the highest level since August 2024. This rise shows how unstable the financial markets are becoming as macroeconomic and fiscal policies change. As the world economy struggles with changing regulations and monetary policies, Bitcoin (BTC) remains a key indicator of market sentiment, with huge price changes caused by outside factors.
Fiscal Tightening and Bitcoin Volatility
Uldis Tearudklans, chief revenue officer at Paybis, a bitcoin exchange based in the UK, said that changes in US policy are making the market even less certain. New economic factors are coming into play with the creation of Elon Musk’s Department of Government Efficiency. This department claims to have saved the government $115 billion by cutting jobs, selling assets, and canceling grants. If governments continue to cut back on spending and interest rates stay the same or go down, there could be less money in the financial markets, affecting Bitcoin.Â
Fed Holds Rates, But Cuts Are Uncertain
The Federal Open Market Committee (FOMC) said on March 19 that interest rates would stay the same, but they hinted that rates might go down twice in 2025. Over the years, changes in interest rates have affected both liquidity and investor mood; which has led to price changes in Bitcoin. Steady or going down rates could make more people want to buy Bitcoin.Â
Bitcoin price changes since Trump’s inauguration
Since President Donald Trump took office in January 2025, the price of Bitcoin has fluctuated greatly. Its value dropped 30% from its high point of $109,590 on January 20 to its low point of $77,041 in mid-March. But as of March 19, Bitcoin recovered to $84,578 as demand returned. More selling pressure in the short term and uncertainty about policy have kept volatility high, and investors are paying close attention to how government moves will affect the crypto sector.
Conclusion
Cryptocurrency prices have been changing recently because of changes in macroeconomics, fiscal policy, and international tensions. US Bitcoin reserve crypto, as shown by creating a US Bitcoin reserve, could mean long-term support, but financial instability in general is still causing price changes.
