BTC volatility signals a bottom as tradfi reels in uncertainty
Bitcoin's implied volatility suggests the recent price bottom near $60,000 may hold, mirroring patterns seen in traditional markets.Summary
Bitcoin may have already bottomed out near $60,000, according to analysis of implied volatility indicators like DVOL and BVIV. These indicators surged to 90% in February during the price crash, historically coinciding with peak panic and market bottoms. Similar to the VIX in traditional markets, this spike in volatility suggests fear has peaked. The article notes that Bitcoin's market structure is increasingly mirroring Wall Street, making implied volatility a useful 'fear gauge'. The VIX itself recently reached a one-year high, though below previous peaks, further supporting the idea that the worst of the downturn may be over. Institutional investors are also shifting towards yield-generating strategies in crypto, indicating a maturing market.
(Source：CoinDesk)