On April 7, the CBOE volatility index (VIX) recorded a rare spike at 60, which is considered to be an extreme market fear and uncertainty. According to Dan Tapiero, a 10TFUND CEO, VIX has been hit by only 60 times in the last 35 years, and the data suggests a rebound against risk assets such as Bitcoin (BTC) for 6 to 12 months.
Known as “Fear Gauge”, VIX reflects investors’ expectations for market turbulence based on S & P 500 options. As you can see on the charts, extreme spikes appeared in 2008 and 2020, and the panic selling price that matches the market floor has a way for the generation market entrance.
In light of this, Tapiero argued that the fear of the market is no different, and the worst fear of the market is “highly likely to be priced and set a step for a positive future.” “The probability prefers a better future,” Taviero said.
Similarly, Julien Bittel, the macroscopic research director of GMI (Global Macro Investor), supported Tapiero’s claim, Tapiero’s claim, and technology stocks were mostly sold after Covid-19 Crash and posted RSI under the age of 30 under 30 years old. More than 55% of the NASDAQ 100 stocks occurred only in major critics such as the 2008 Lehman brothers.
Bittel explained that after 60 years of age after 60 years of age, the peak uncertainty was implied, and the investor’s heart was feared. BitTel briefly deals with US investor intelligence surveys, comparing 23.6%of the strongest feelings with the lowest readings since December 2008.
In addition, respondents of the US Individual Investor Association (AAII) survey are currently 62%of the weakest reading since March 2009. Bittel said.
“In other words, we have returned to the same level of fear as marking the bottom of the stock market after the global financial crisis.”
This extensive fear sets market entry with assets such as Bitcoin along with a rare VIX spike. This is because the recovery of market liquidity will inevitably flow into dangerous assets.
Related: ‘Stronger Hands’ of SAYLOR, ETF Investors helps to stabilize Bitcoin -Analysts
The analyst warns that the Bitcoin VIX trend is weak.
Macroeconomic experts emphasized the possibility of strong assets, but market analyst Tony severino suggested that the Bitcoin/VIX ratio could lead to bear market. Recently, in the X post, Severino predicted that Bitcoin could already reach the peak at this period, but it was open to the change of opinion until the end of April.
As you can see on the chart, Severino recorded a signal in early January. The analyst used the Elliott Wave theory model to accurately point out the current weakness, and it is still early to say that Bitcoin will change optimistic depending on the VIX correlation.
Related: Bitcoin price volatility when a speculator moves 170K BTC
This article does not include investment advice or recommendation. All investment and trading measures include risks, and the reader must do his own research when making a decision.