Bitcoin Goes Wild: Record Volatility Amid U.S. Economic Turmoil!

The extreme volatility of bitcoin is back, fueled by a cocktail of economic uncertainties and government initiatives in the United States. While the crypto market tries to stabilize after a tense start to the year, the price of BTC experiences violent fluctuations. In just a few days, it reached a peak of $93,000 before plummeting dramatically below the $82,000 mark. This dynamic reflects the nervousness of investors in light of two major announcements: the imposition of tariffs of 25% by the United States on Canada and Mexico, and Washington’s ambition to create a national crypto reserve.

Unprecedented volatility in bitcoin: record-breaking

Market indicators show extreme instability. According to Glassnode, bitcoin’s volatility has reached rarely seen heights, exceeding 80% over periods of one to two weeks. This level coincides with phases of political and economic uncertainty, where markets attempt to anticipate the next decisions of the U.S. Federal Reserve (FED).

TradingView highlights that another key indicator, the Average True Range (ATR), surged beyond 4,900 points, up from 3,000 at the end of February. This sharp increase in volatility is partly explained by President Donald Trump’s decision to impose tariffs of 25% on imports from Canada and Mexico. This announcement immediately triggered a panic in the markets, accelerating the liquidation of over a billion dollars in crypto derivatives.

The reaction of bitcoin was immediate. After nearing $93,000, the crypto plunged in a matter of hours below $82,000, taking the entire market with it. Ethereum (ETH) and Solana (SOL), two of the most followed altcoins, fell by 12% and 20%, respectively. This movement is a reminder of a well-known reality for investors: macroeconomic shocks still weigh heavily on cryptos, despite their increasing maturity.

An American crypto reserve: a turning point for adoption?

In parallel to this economic turbulence, another announcement shook the market: the United States’ desire to establish a crypto reserve. This project, unveiled on March 2, aims to include assets such as bitcoin (BTC), Ethereum (ETH), XRP (XRP), and Cardano (ADA) in a national reserve, somewhat akin to what gold represents for central banks.

However, this news initially sparked a wave of optimism among investors. An official recognition of bitcoin by the U.S. administration could represent a major advance in legitimizing these assets. But this enthusiasm was quickly tempered by the market’s reaction, illustrating a fragile balance between the opportunity for institutional adoption and the fear of increased regulatory oversight.

Indeed, establishing a crypto reserve could also mean increased control over the market. The SEC, which has dropped several lawsuits against crypto companies, might seize this momentum to strengthen regulation in the sector. A scenario that worries some players, as they fear a framework that is too restrictive could stifle innovation.

This double shock (economic and institutional) places cryptos in a decisive transitional phase. The current volatility could be the prelude to long-term stabilization if institutions find common ground between regulation and massive adoption. For now, the market oscillates between hope and caution, torn between the promise of official recognition and the fear of overly invasive regulatory intervention. The future will depend on the next economic and political decisions, but one thing is certain: crypto has never been closer to a major transformation era.