Bitcoin price analysis: BTC could be bottoming, based on the stock market's VIX
The stock market's VIX hitting a one-year high suggests traditional market panic, potentially coinciding with a bitcoin bottom based on historical correlation.Summary
The CBOE Volatility Index (VIX), Wall Street's "fear gauge," recently surged above 35, reaching its highest level in nearly a year due to global market reactions, particularly a spike in oil prices. Historically, sharp spikes in the VIX often coincide with local bottoms for Bitcoin. For instance, the VIX surged during the April 2025 tariff turmoil and the August 2024 yen carry trade unwind when Bitcoin found support.
Interestingly, Bitcoin has diverged from the current trend, trading up while equities and gold fell. Furthermore, Bitcoin's own volatility gauge, the BVIV, spiked in early February when BTC briefly dropped to $60,000, suggesting the crypto market may have already experienced its panic phase. This divergence implies crypto markets might have front-run the stress now affecting traditional finance, although the current VIX level suggests traditional market volatility may persist.
(Source：CoinDesk)