Bitcoin Price Volatility Surges as Market Reacts to Trump’s Strategic Crypto Reserve and Tariff Policies
Bitcoin’s price volatility spiked to its highest level of the year last Monday and has remained elevated, signaling persistent market jitters. According to The Block Data Dashboard, BTC’s annualized volatility rate hit 59.4% on Monday before stabilizing around 58%—marking the most volatile period for the asset since last December.
Unlike the late 2024 rally—fueled by optimism surrounding Donald Trump’s pro-crypto stance and his impending presidency—Bitcoin has trended downward in recent weeks. BTC is now down over 15% in the past month, despite a series of bullish headlines, including the official formation of a U.S. Strategic Crypto Reserve.
Trump Establishes Strategic Crypto Reserve Amid Market Uncertainty
President Trump recently signed an executive order establishing a Strategic Crypto Reserve, directing federal agencies to conduct a full audit of the government’s digital asset holdings. This includes approximately 200,000 BTC—valued at roughly $17 billion at the time of signing—according to Bitcoin Treasuries.
David Sacks, Trump’s appointed Crypto Czar, emphasized that the U.S. will not sell its Bitcoin holdings, instead treating the reserve as a “digital Fort Knox.” However, the market’s reaction suggests that investors may have already priced in the announcement when BTC surged to an all-time high of over $108,000 in December. Others speculate that the reserve’s funding mechanism—sourcing Bitcoin from criminal or civil asset forfeitures rather than direct government purchases—was a disappointment to traders expecting a more aggressive accumulation strategy.
Crypto Summit and Market Response
Bitcoin’s decline comes despite Trump’s efforts to engage with industry leaders. The president recently hosted a “crypto summit” attended by top executives, including Coinbase CEO Brian Armstrong and Kraken co-CEO Arjun Sethi. The event aimed to solidify regulatory clarity and encourage innovation in the U.S. digital asset space, yet the market remained unfazed, with Bitcoin continuing its downward trajectory.
Tariffs Trigger Broader Market Sell-Off as Gold Surges
Bitcoin’s recent volatility is not occurring in isolation—it coincides with a broader equity market downturn, triggered by new tariffs announced by the Trump administration. The trade policy uncertainty has pushed investors toward traditional safe-haven assets, with gold surging last Tuesday while Bitcoin experienced continued selling pressure.
Despite the short-term pullback, Bitcoin remains a focal point in global markets as the U.S. government integrates digital assets into its financial strategy. However, for traders, the key question remains: will Bitcoin reclaim its previous highs, or is further downside ahead?
