VIX Index Surges 74%, Signaling Bitcoin May Have Reached a Local Bottom

BlockBeats News, December 19th, according to CoinDesk, the Chicago Board Options Exchange Volatility Index (VIX) surged 74% yesterday, marking its largest single-day increase since February 2018, and the second highest in history. Analysts pointed out that this surge was driven by a 25 basis point rate cut by the Fed and hawkish statements by Powell, triggering market panic, causing Bitcoin to briefly drop below $100,000, and the US stock market to fall by about 3%.

Historical data shows that a significant spike in the VIX often precedes Bitcoin hitting a local bottom. For example, after the VIX soared 116% in February 2018, Bitcoin rebounded from $6,891 to above $11,000; and when the VIX rose by 65% in August 2024, Bitcoin bounced back from $54,000 to $64,000.