Bitcoin's volatility spikes to its highest since FTX's collapse as prices crater to nearly $60,000

Bitcoin's volatility gauge, the Volmex bitcoin volatility index (BVIV), surged to nearly 100%, its highest level since the 2022 FTX exchange collapse, indicating intense market panic as the price plummeted toward $60,000. The BVIV, which measures four-week annualized expected price turbulence, jumped from 56% on Thursday, mirroring the function of the Cboe's VIX for the S&P 500. Experts noted this surge correlated with a sharp risk-off move across asset classes, with implied volatility driven by high demand for put options—bets against price drops—on Deribit. Traders bought significant downside protection as Bitcoin fell from $70,000, fearing losses for firms holding BTC purchased at higher levels. Although volatility spiked sharply, Bitcoin has since recovered to over $64,000, and one analyst suggests that if price action stabilizes, the stretched volatility could quickly recede.

(Source：CoinDesk)