2 days ago
It’s been an exceptionally volatile week, but 1 measurement whitethorn beryllium signaling longer-term bullish sentiment for bitcoin.
The sell-off successful equities began connected April 3, spurred by President Donald Trump's tariff-led uncertainties. Each time since past has been marked by crisp moves successful some directions. The panic has deed some the equities and enslaved markets, portion golden has surged to caller all-time highs, and the DXY Index has breached beneath 100 for the archetypal clip since July 2023.
In response, the S&P Volatility Index (VIX)—often called Wall Street's "fear gauge" —has surged to its highest level since past August and this is wherever things get absorbing for bitcoin.
The ratio of bitcoin to VIX has deed 1,903 currently, touching a semipermanent trendline that past clip coincided with marketplace volatility astir the unwinding of the yen transportation trade. At the time, bitcoin had reached a bottommost of astir $49,000.
In fact, this is the 4th clip this ratio has deed the trendline and past recovered the bottom. Previously, it touched the enactment successful March 2020 during the highest COVID-19 situation and initially successful August 2015, some times followed by a rally successful prices.
If this trendline continues to service arsenic reliable support, it could suggest that bitcoin mightiness person erstwhile again recovered a semipermanent bottom.
Read more: Bitcoin’s Recent Drawdown Proves Its More Than Just a Leveraged Tech Play
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