VIX Tumbles 45% in Three Weeks as Bitcoin Eyes Return to $80,000
The Cboe Volatility Index (VIX), often called Wall Street’s “fear gauge,” reflects expectations for future volatility in the U.S. equity options market. A sharp decline in the VIX usually signals cooling demand for safe-haven assets and stronger risk appetite, potentially giving highly volatile assets such as Bitcoin fresh momentum.
The VIX has plunged more than 45% over the past three weeks, retreating rapidly in under a month and signaling a marked improvement in market sentiment. Historical trends show that similar declines have often coincided with strong Bitcoin rebounds. Analysts therefore expect BTC could retake $80,000 and, if it breaks above that level, advance toward a target of $82,700.
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The history behind this eventBitcoin ‘Fear Gauge’ Surges Nearly 20% in Biggest One-Day Jump Since February
Volmex’s Bitcoin Volatility Index, or BVIV, reflects options-market expectations for future price swings and is often viewed as the crypto market’s “fear gauge.” A sharp rise in the index signals stronger demand for hedging and heightened investor concern about Bitcoin’s short-term decline and mounting risks.
BVIV surged nearly 20% on Tuesday, its biggest one-day gain since the market crash on Feb. 5, breaking roughly two months of calm. Bitcoin fell below $66,000 at the same time, with its price declining as implied volatility climbed, underscoring rapidly mounting concern that the selloff could continue.
VIX Surges to One-Year High, Signaling Bitcoin May Have Bottomed
The Cboe Volatility Index, or VIX, reflects expected U.S. stock-market volatility over the next 30 days, and a move above 35 typically signals a sharp rise in risk aversion. Historically, VIX peaks have occurred near interim Bitcoin lows, making the index a potential indicator of turning points in the crypto market.
The VIX recently climbed above 35 to its highest level in nearly a year, while Bitcoin briefly fell to about $60,000. The Bitcoin Volatility Index, or BVIV, had already surged in February. Analysts say fear may have peaked in crypto before it did in U.S. equities, suggesting Bitcoin may have formed an interim bottom near $60,000.
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