Bitcoin’s price volatility surged to a six-month high this week as escalating U.S. economic uncertainty fueled market turbulence. The cryptocurrency’s 30-day volatility reached 3.6% on Wednesday, up sharply from 1.6% a month ago, according to data from CoinGlass. This spike coincided with Bitcoin falling below the $80,000 mark for the first time since November 2024, driven by investors retreating from risk-sensitive assets amid growing recession fears. Over the past month, Bitcoin declined 10%, erasing over 20% of its value from January’s all-time high of $108,000.
The turbulence mirrored broader market unease as U.S. stocks tumbled following President Donald Trump’s warnings of an economic “transition.” The S&P 500 dropped 2% this week, while the Nasdaq plunged over 3.5%. Analysts linked Bitcoin’s instability to macroeconomic pressures, including inflation risks and Trump’s recent tariff policies, which have heightened fears of a prolonged slowdown. Greg Magadini, director of derivatives at Amberdata, noted that volatility could persist until clarity emerges on how trade tensions might impact inflation and interest rates.
Bitcoin’s current price hovers around $84,454, down from its six-month high of $109,117 but still 34% above its mid-2024 lows. The cryptocurrency remains strongly correlated with equity markets, exacerbating its recent swings as investors hedge against economic uncertainty. Meanwhile, the White House has reportedly explored adding Bitcoin to the U.S. strategic reserve, a move analysts say could stabilize long-term demand despite short-term turbulence.
While bearish sentiment grows, some institutions maintain bullish long-term forecasts. Standard Chartered predicts Bitcoin could rally to $200,000 by late 2025, citing institutional inflows into spot Bitcoin ETFs. Others, including VanEck and 10x Research, foresee prices rebounding to $180,000 or higher if macroeconomic conditions stabilize. Still, near-term risks loom, with technical analysts warning that a drop below $85,000 could trigger a deeper correction toward $74,000.
Sources:
https://www.ainvest.com/news/bitcoin-volatility-surges-economic-uncertainty-2503/
https://www.financialexpress.com/business/investing-abroad-the-great-us-slowdown-is-the-american-economy-headed-for-a-major-recession-in-2025-3782032/
https://www.bullionbypost.co.uk/bitcoin-price/bitcoin-price-6-month-usd/
https://www.btcmarkets.net/blog/us-recession-fears-hit-bitcoin-stocks
https://www.financemagnates.com/cryptocurrency/will-bitcoin-price-hit-200k-in-2025-expert-btc-prediction-offers-hope-in-sideways-market/
