On April 7, the CBEE (VIX) variation index published a infrequent jump to 60, perceived as a barometer with extreme fear and uncertainty. According to Dan Tapiero, CEO 10tfund, VIX reached 60 Only five times in the last 35 years, and the data suggest the reflection of risk assets such as Bitcoin (BTC) within 6 to 12 months.
VIX, which is widely considered a “measure of fear”, reflects the expectations of investors regarding market turbulence based on trade in S&P 500 options. As shown in the chart, extreme spikes were perceptible in 2008 and 2020, usually convergent with the market bottom, where panic -powered sellers paved the road to generational market entries.
In the airy of this, Tapiero argued that the current jump is not different, and the worst market fears probably “valued”, establishes the stage for a positive future. Tapiero said that “chances are conducive to a better future.”
Similarly, Julien Bittel, Macro Research Chief at Global Macro Investor (GMI), maintained Tapiero’s claim and stated that the technological actions have been the most sold out since the Covid-19 disaster, and over 55% of NASDAQ 100 shares have been published by a 14-day RSI below 30. Such a market signal took place only during earnest crises, such as Lehman Brothers breakdown in 2008 and the fall of Covid-19 2020.
Diminutive explained That after Vix touched 60 last week, he suggested a peak uncertainty that raises fear in the minds of investors. Bittel, briefly touching the American Investors Intelligence survey, compared the current stubborn 23.6% mood to the lowest reading since December 2008.
In addition, the respondents of the American Association of Insid Investors (AAII) survey are currently 62% bears, reflecting the highest reading of bears since March 2009. Bittel said that bittel said that bittel said that Bittel said that bittel said
“In other words, we returned at the same level of fear, which meant the lower part of the stock market after the global financial crisis.”
This widespread fear, along with a infrequent VIX jump, is prepared for market entries in resources such as Bitcoin, because regaining market liquidity will inevitably return to risk assets.
Related: Saylor, ETF investors “stronger hands” facilitate stabilize bitcoins – analyst
The analyst warns Bitcoin Vix trends are bears
While macroeconomic experts emphasized the possibility of a stubborn risk of risk assets, an analyst Markets Tony Severino suggested that Bitcoin/VIX ratio can also lead to a bear. In the last post of X Severino predicted that Bitcoin could already reach the peak of this cycle, but remained open to a possible change of opinions by the end of April.
As shown in the chart, Severino noticed a sales signal at the beginning of January. The analyst used the Wave Elliott theory model to indicate the current conditions of the bear and said that it is still to say early that Bitcoin is becoming stubborn on the basis of VIX correlation.
Related: Bitcoins price variability “without
This article does not contain investment advice or recommendations. Each investment and commercial movement involves risk, and readers should conduct their own research when making decisions.
