Rare market volatility signal points to higher Bitcoin price in 6 to 12 months — Dan Tapiero

On April 7, the CBOE Volatility Index (VIX) posted a uncommon spike to 60, a level seen arsenic a barometer of utmost marketplace fearfulness and uncertainty. According to Dan Tapiero, CEO of 10Tfund, the VIX has deed 60 lone 5 times successful the past 35 years, and information suggests a rebound for hazard assets specified arsenic Bitcoin (BTC) successful 6 to 12 months.

CBOE Volatility Index. Source: Cointelegraph/TradingView

The VIX, which is wide considered a "fear gauge," reflects capitalist expectations of marketplace turbulence based connected S&P 500 options trading. As illustrated successful the chart, utmost spikes were seen successful 2008 and 2020, typically coinciding with marketplace bottoms, wherever panic-driven sellers paved the mode for generational marketplace entries.

In airy of that, Tapiero argued that the existent spike is nary different, with the worst of marketplace fears apt "priced in," mounting the signifier for a affirmative future. Tapiero said that “odds favour amended future.”

Likewise, Julien Bittel, caput of macro probe astatine Global Macro Investor (GMI), supported Tapiero’s assertion and said that tech stocks are astatine their astir oversold since the COVID-19 crash, with implicit 55% of Nasdaq 100 stocks posting a 14-day RSI beneath 30. Such a marketplace awesome has occurred lone during large crises similar the 2008 Lehman Brothers illness and the 2020 COVID-19 pandemic.

American Association of Individual Investors survey. Source: X.com

Bittel explained that aft the VIX touched 60 past week, it implied highest uncertainty, which breeds fearfulness successful investors’ minds. Briefly touching connected the US Investors Intelligence Survey, Bittel compared the existent bullish sentiment of 23.6% to the lowest speechmaking since December 2008.

Additionally, the American Association of Individual Investors (AAII) survey respondents are presently 62% bearish, reflecting the highest bearish speechmaking since March 2009. Bittel said,

“In different words, we’re backmost astatine the aforesaid levels of fearfulness that marked the bottommost of the equity marketplace aft the Global Financial Crisis.”

This wide fear, alongside a uncommon VIX spike, sets up for marketplace entries successful assets similar Bitcoin, arsenic the betterment of marketplace liquidity volition inevitably travel backmost into risk-on assets.

Related: Saylor, ETF investors’ ‘stronger hands’ assistance stabilize Bitcoin — Analyst

Analyst warns Bitcoin VIX trends are bearish

While macroeconomic experts highlighted the anticipation of a bullish result for hazard assets, markets expert Tony Severino suggested that the Bitcoin/VIX ratio mightiness besides pb to a carnivore market. In a caller X post, Severino predicted that Bitcoin could person already peaked this cycle, but remained unfastened astir a imaginable alteration successful sentiment by the extremity of April.

Bitcoin VIX investigation by Tony Severino. Source: X.com

As illustrated successful the chart, Severino noted a merchantability awesome astatine the opening of January. The expert utilized the Elliott Wave mentation exemplary to pinpoint the existent bearish conditions and said that it is inactive aboriginal to accidental that Bitcoin volition crook bullish based connected the VIX correlation.

Related: Bitcoin terms volatility 'imminent' arsenic speculators determination 170K BTC — CryptoQuant

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