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S&P Global Finds Bitcoin’s Evolving Role in Markets

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Crypto Breaking News

Editor’s note: S&P Global today releases Bitcoin volatility and market dynamics findings, highlighting Bitcoin’s shift from a niche asset to a market-connected instrument. The full report, Bitcoin Volatility Trends: A Deep Dive into Market Dynamics and Risk, examines price patterns, volatility, and the interplay with traditional markets, while noting that tokenized assets and new products introduce additional risks beyond the asset itself. As Cristina Polizu, Managing Director of S&P Global Ratings, emphasizes, volatility has trended down in the long term, yet remains linked to broader market conditions and carries custodial, smart contract, and operational risks.

Key points

  • Volatility Trends: Bitcoin’s price swings are on a long-term downward trend as institutional adoption grows, with increased liquidity from futures and ETFs.
  • Bitcoin Hedge Insights: Bitcoin functions more effectively as a hedge against long-term currency debasement than as a hedge against short-term inflation.
  • Structural Market Risks: Bitcoin’s trading structure, featuring leveraged perpetual futures markets and automated liquidations, amplifies price volatility compared to other financial assets.
  • New Product Risks: Innovations like tokenized bitcoin, ETFs, and Digital Asset Treasury companies introduce extra risks beyond the asset, including counterparty, custodial, smart contract, and operational risks.

Why this matters

This research suggests Bitcoin’s volatility is trending lower over time while its market connections deepen, linking its performance to broader financial conditions. The addition of new products and tokenized offerings can add complexity and risk, influencing how investors assess exposure to digital assets and their role in diversified portfolios.

What to watch next

  • Monitor institutional adoption and liquidity trends as futures and ETFs expand.
  • Watch developments in tokenized bitcoin and other new-product offerings for risk implications.
  • Observe Bitcoin’s price behavior and its relationship to traditional markets as the asset evolves.

Disclosure: The content below is a press release provided by the company/PR representative. It is published for informational purposes.

S&P Global Finds Bitcoin’s Evolving Role in Markets

— Bitcoin now accounts for more than half of cryptocurrency markets’ nearly $2.33 trillion capitalization*

— Bitcoin’s price has dropped by nearly half since October 2025

— Price volatility for bitcoin is on a long-term downward trend – though it remains higher than that of traditional assets

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NEW YORK (March 5, 2026) – S&P Global today published new research (see report link) examining how bitcoin has evolved from a niche asset to one with meaningful linkages to traditional financial markets.

Bitcoin Volatility Trends: A Deep Dive into Market Dynamics and Risk,’ provides a detailed analysis of bitcoin’s market behavior, price patterns, and market trends.

Key findings from the research reveal:

    • Volatility Trends: Bitcoin’s price swings are on a long-term downward trend as institutional adoption grows, though they remain larger than those of traditional assets. A growing market for bitcoin futures and exchange-traded funds (ETFs) increased bitcoin adoption, which in turn increased liquidity.
    • Bitcoin Hedge Insights: The analysis indicates bitcoin functions more effectively as a hedge against long-term currency debasement than as a hedge against short-term inflation.
    • Structural Market Risks: Bitcoin’s trading structure, featuring leveraged perpetual futures markets and automated liquidations, amplifies price volatility compared to other financial assets.
    • New Product Risks: Innovations like tokenized bitcoin, ETFs, and Digital Asset Treasury companies introduce extra risks beyond the asset, including counterparty, custodial, smart contract, and operational risks.

Cristina Polizu, Managing Director, S&P Global Ratings, said: “Our research indicates that bitcoin’s volatility has trended down over the long term, and that its behavior is increasingly linked to broader market conditions. At the same time, the added complexity of new bitcoin-related products can introduce risks beyond the asset itself, including custodial, smart contract, and operational risks.”

Bitcoin Volatility Trends: A Deep Dive into Market Dynamics and Risk,’ is part of the Look Forward research series, special reports that offer a deep dive into the most important themes, trends, and topics that are transforming the global economy.

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S&P Global: Building on Growth in Digital Assets

S&P Global has continued driving growth in Digital Assets markets, underpinned by its leading analyst-driven research and opinions:

Media Contacts

Isabel Allanwood

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S&P Global

+ 44 7483 368 605

isabel.allanwood@spglobal.com

PR_COE@spglobal.com

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Russell Gerry

S&P Global Ratings

+44 7817 126 628

russell.gerry@spglobal.com

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About S&P Global

S&P Global (NYSE: SPGI) enables businesses, governments, and individuals with trusted data, expertise and technology to make decisions with conviction. We are Advancing Essential Intelligence through world-leading benchmarks, data, and insights that customers need in order to plan confidently, act decisively, and thrive economically in a rapidly changing global landscape.

From helping our customers assess new investments across the capital and commodities markets to guiding them through the energy expansion, acceleration of artificial intelligence, and evolution of public and private markets, we enable the world’s leading organizations to unlock opportunities, solve challenges, and plan for tomorrow – today. Learn more at www.spglobal.com.

Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

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Crypto World

Trump asks Congress for $1.5 trillion defense budget

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Trump asks Congress for $1.5 trillion defense budget

The Trump administration submitted a $1.5 trillion defense spending request to Congress on April 3 — the largest military budget proposal in U.S. history — pairing record military outlays with cuts to domestic programs in a fiscal combination that signals sustained inflation pressure and a narrower path to Fed rate cuts.

Summary

  • The Trump administration submitted a $1.5 trillion FY2027 defense budget proposal to Congress on April 3, roughly a 42% increase over current Pentagon spending levels.
  • The proposal pairs the record defense allocation with $73 billion in cuts to domestic programs including housing, health research, and education.
  • The fiscal combination — wartime spending surge alongside domestic contraction — carries implications for inflation, Federal Reserve policy, and risk assets including crypto.

The Trump administration submitted a $1.5 trillion defense spending request to Congress on April 3 — the largest military budget proposal in U.S. history — pairing record military outlays with cuts to domestic programs in a fiscal combination that signals sustained inflation pressure and a narrower path to Fed rate cuts. According to NPR’s reporting on the White House release, the proposal represents a roughly 42% increase over current spending and includes $1.1 trillion in base Pentagon funding alongside $350 billion to be passed through the budget reconciliation process.

A $1.5 trillion defense budget — the first base defense budget in U.S. history to cross the $1 trillion mark — funded partly through domestic spending cuts rather than new revenue, raises immediate questions about the fiscal trajectory of the U.S. government. Budget Director Russell Vought wrote that “President Trump promised to reinvest in America’s national security infrastructure, to make sure our nation is safe in a dangerous world.” For crypto markets, the more immediate concern is the inflationary signal embedded in the spending mix.

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Defense-heavy budgets during active wartime, combined with domestic spending reductions that shift costs to states, tend to sustain elevated government outlays without equivalent economic output — a dynamic that complicates the Federal Reserve’s rate path at exactly the moment investors had been positioned for monetary easing.

What investors are watching

Bitcoin was trading near $67,000 as the proposal was released, with U.S. equity markets closed for Good Friday. The budget announcement lands as an additional fiscal signal atop an already difficult macro environment for crypto — one defined by oil above $100, the ongoing Strait of Hormuz closure, and a strong March jobs print that independently reduced near-term rate cut expectations.

The budget proposal must now move through Congress, where both the size and the domestic spending cuts will face bipartisan scrutiny. A prolonged legislative fight over defense appropriations would add fiscal uncertainty to the existing geopolitical backdrop — a combination that has historically supported safe-haven assets over risk assets in the near term.

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Cambodian Lawmakers Propose Severe Prison Time for Crypto Scammers

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Law, Cambodia, Crimes, Scams

Cambodia’s parliament passed legislation targeting compounds used to defraud victims through scams, including those involving cryptocurrency.

In a Friday notice, the Senate of the Kingdom of Cambodia announced that the chamber had unanimously approved the draft law with no amendment, with 58 senators voting yes. According to reports, the draft bill, which would still need the king’s approval before becoming law, imposed prison time between two to five years and up to $125,000 in fines for certain crimes, or twice the time in prison and penalties if part of a gang or targeting multiple victims. 

“The draft law stipulates the establishment of criminal rules to fill the gaps and deficiencies in the current law, which will contribute significantly to addressing challenges that pose serious risks to social security, the economy and citizens, including affecting Cambodia’s reputation, as well as improving the effectiveness of the fight against fraud through technological systems, aiming to contribute to the preservation and protection of public security and order, and improving the effectiveness of cooperation in combating this crime,” said a translation of the Friday Senate notice on the bill.

Law, Cambodia, Crimes, Scams
Friday notice announcing the crypto bill’s passage. Source: Senate of the Kingdom of Cambodia

According to a 2025 report from the US State Department, Cambodia’s government “frequently downplayed scam operation cases as labor disputes,” never arresting or prosecuting any owner or operator of a suspected scam compound. The Cambodian operations are just some of many across parts of Southeast Asia, where compounds are alleged sources of forced labor.

Related: UK sanctions $20B scam market by cutting ‘legitimate’ crypto ties

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The passage of the bill followed UK authorities sanctioning the operators of a Cambodia-based scam center, and the country extraditing to China the leader of a criminal syndicate with alleged tied to scam compounds. Cambodia’s national assembly advanced the bill on March 30, with all 112 members voting yay. 

What happens in these scam compounds?

According to a 2024 UN News report that explored a compound in the Philippines, scam centers like the ones targeted under the Cambodian bill were massive undertakings, with facilities designed so that the residents would never need to leave. Although many of the workers were responsible for carrying out the scams, they were also “trafficked here, held against their will” and “exposed to violence” in the compounds.

“The people who work here are basically fenced off from the outside world,” said the report. “All their daily necessities are met. There are restaurants, dormitories, barbershops and even a karaoke bar. So, people don’t actually have to leave and can stay here for months.”

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