Bitcoin volatility at highest level since August 2024: concerns about the US economy and Trump's unpredictable policies are driving movement

Bitcoin volatility at highest level since August 2024: concerns about the US economy and Trump's unpredictable policies are driving movement

Bitcoin Volatility: Current Developments and Economic Influences

On March 19, 2024, Bitcoin's volatility rose to 3.6%, which was its highest level since August 2024. This increased volatility reflects market uncertainty and is closely linked to ongoing concerns about the US economy and Donald Trump's erratic trade policies.

Added complexity due to Elon Musk?

The situation is further complicated by Elon Musk's introduction of the Department of Government Efficiency (DOGE), according to Uldis Tearudklans of the Paybis crypto exchange. Tearudklans expresses concern about the impact of this political development. The idea of ​​cutting government spending has support among both Republicans and Democrats, but the economic effects are difficult to estimate.

DOGE is said to have already saved the US government $115 billion through layoffs, asset sales, subsidy removals, and other austerity measures.

Increase in Bitcoin volatility since Trump's inauguration

A look at the time since Donald Trump's inauguration shows that Bitcoin's volatility has increased significantly. On the day of its inauguration, January 20, 2024, the Bitcoin price reached a new all-time high of $109,000. However, a few days later there was a 30% decline, pushing the price to a preliminary low of $76,700.

Bitcoin is currently seeking support in the $84,000 to $87,000 range – although whether this represents a sustainable recovery remains to be seen. The causes of the turbulence are still present: a weakened US economy and the high degree of uncertainty that Trump's policies can cause.

outlook

Bitcoin is currently operating in an environment in which new all-time highs still seem a long way off. In order to regain the positive momentum, numerous factors would have to change significantly into the positive. However, history has shown that such changes can occur very quickly. Investors and market participants will follow developments closely in order to be able to react to possible changes in the Bitcoin market.