Bitcoin Volatility Surges 59.4% as Trump Administration Embraces Crypto

Bitcoin's price volatility reached unprecedented levels on March 10th, causing significant market anxiety. The annualized volatility peaked at 59.4%, and although it has since settled around 58%, this remains the highest volatility since December 2022. Unlike the bullish sentiment of last December, Bitcoin's value has retracted over 15% in the past month due to increasing bearish sentiment.

This surge in volatility is closely linked to an executive order signed by former President Trump, which aimed to create a strategic reserve for Bitcoin. The order involves a critical assessment of the government’s digital asset holdings, which include around 200,000 Bitcoin, valued at approximately $17 billion at the time. Trump's appointed "Crypto Czar," David Sacks, assured that these Bitcoins would remain untouched, likening them to a digital Fort Knox and positioning them as a substantial national asset.

On March 7, 2025, the White House hosted a high-profile gathering known as the Crypto Summit, which brought together leaders from the cryptocurrency industry and U.S. government officials. The summit was convened by President Donald Trump's administration and aimed to foster dialogue on crypto policy, regulatory frameworks, and the future of digital assets in the United States. The event marked a shift in the administration's stance on cryptocurrency, particularly Bitcoin.

President Trump, who had previously been skeptical of cryptocurrency, embraced Bitcoin and crypto entrepreneurs during his 2024 election campaign. He vowed to make the United States the "crypto capital" and promised to end what he termed President Biden’s “war on crypto.” The summit was a culmination of this courtship, affirming the new administration's view of digital assets as a strategic priority.

The administration's stance on crypto marked a sharp reversal from the prior regime's approach. The previous White House had taken a cautious, often hostile regulatory tone, ramping up enforcement actions and urging banks to sever ties with crypto clients. In contrast, Trump's team signaled an intent to roll back those policies, establishing a U.S. Strategic Crypto Reserve, banning the development of a central bank digital currency, and pushing Congress for clear legislation to integrate crypto into America’s financial system.

The summit's purpose was twofold: to showcase the administration’s crypto-friendly agenda and to solicit input from industry leaders on how to turn the