The post Bitcoin’s Volatility Rises Amid Mixed Reactions to Trump’s Crypto Reserve Strategy and Market Declines appeared on BitcoinEthereumNews.com.

Bitcoin’s recent price volatility, reaching alarmingly high levels, echoes the market’s uncertainty amid economic shifts and regulatory developments. Last Monday marked a peak in bitcoin’s annualized volatility at 59.4%, underscoring significant fluctuations that have implications for investors and traders alike. According to COINOTAG Data Dashboard, despite these turbulent times, Bitcoin Treasuries indicate the U.S. government’s substantial holdings, which have not been sold and are being likened to a “digital Fort Knox.” Bitcoin’s volatility spikes to record levels, driven by economic changes and government strategies, raising concerns amid broader market instability. Bitcoin’s Volatility Peaks Amidst Strategic Government Initiatives The cryptocurrency market has felt a palpable tension as Bitcoin’s price volatility surged recently, reaching its highest point since December. This surge, reflected in an annualized volatility rate of 59.4% on Monday, points to ongoing market uncertainty, challenging the stability that many investors hope for. In contrast to a year ago, when bullish sentiments flourished alongside predictions of a favorable regulatory environment, recent trends show a pessimistic shift, with Bitcoin’s price declining over 15% in the past month. The Impact of Executive Orders on Market Sentiment One of the critical developments influencing market sentiment is President Trump’s recent executive order establishing a Strategic Crypto Reserve. This order includes a directive for a full accounting of the federal government’s digital asset holdings, which encompasses approximately 200,000 BTC valued around $17 billion. Trump’s administration intends to treat these assets as a safeguard against economic turbulence, with Crypto Czar David Sacks affirming the government’s commitment to retain these holdings rather than liquidate them. Market Reactions and Broader Economic Concerns Despite the strategic initiatives taken by the government, many analysts, including Nick Ruck from LVRG Research, suggest that the market’s reaction has been one of disappointment, primarily because funding for the reserve is dependent on bitcoin procured…

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Filed under: News - @ March 9, 2025 4:21 pm