Analysts have conflicting views on whether record volatility within the US equities markets will have a positive or negative impact on Bitcoin price in the long term.
On April 7, the CBOE Volatility Index (VIX) posted a rare spike to 60, a level seen as a barometer of extreme market fear and uncertainty. According to Dan Tapiero, CEO of 10Tfund, the VIX has hit 60 only five times in the last 35 years, and data suggests a rebound for risk assets such as Bitcoin (BTC) in 6 to 12 months.
The VIX, which is widely considered a “fear gauge,” reflects investor expectations of market turbulence based on S&P 500 options trading. As illustrated in the chart, extreme spikes were seen in 2008 and 2020, typically coinciding with market bottoms, where panic-driven sellers paved the way for generational market entries.
In light of that, Tapiero argued that the current spike is no different, with the worst of market fears likely “priced in,” setting the stage for a positive future. Tapiero said that “odds favor better future.”
