Bitcoin’s Bottom: Is Wall Street’s Fear Gauge Just Playing Games? 🤔

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What to know:

  • The S&P Volatility Index has soared to heights unseen since last August, a veritable rollercoaster of market uncertainty. 🎢
  • Our dear bitcoin has danced its way to a VIX ratio that has touched a long-term trendline, whispering sweet nothings of a potential bottom. 💔
  • This trendline, a seasoned oracle, has previously heralded the bottom for bitcoin during tumultuous market events, followed by jubilant price rallies. 🎉

Ah, what a week it has been! A tempest of volatility, yet amidst the chaos, a glimmer of hope for bitcoin enthusiasts. 🌈

The great sell-off in equities commenced on April 3, ignited by President Trump’s tariff-induced uncertainties. Each day since has been a theatrical performance of sharp moves, a veritable ballet of panic across both equities and bonds, while gold has pirouetted to new all-time highs, and the DXY Index has dipped below 100 for the first time since July 2023. Bravo! 👏

In this grand spectacle, the S&P Volatility Index (VIX)—that notorious “fear gauge” of Wall Street—has surged to its highest level since last August. And here, dear reader, is where the plot thickens for our beloved bitcoin. 🕵️‍♂️

Currently, the ratio of bitcoin to VIX has reached a staggering 1,903, caressing a long-term trendline that last coincided with the market’s melodrama surrounding the yen carry trade’s unwinding. At that time, bitcoin had plummeted to a lowly $49,000. Oh, the irony! 😂

Remarkably, this is the fourth time this ratio has flirted with the trendline before finding its bottom. It previously graced this line in March 2020 during the peak of the COVID-19 crisis and initially in August 2015, both times followed by a jubilant rally in prices. History, it seems, has a penchant for repetition. 📜

If this trendline continues to act as a steadfast support, it may very well suggest that bitcoin has once again stumbled upon a long-term bottom. Let us hold our breath and see if the drama unfolds! 🎭

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2025-04-12 20:07