Bitcoin’s so-called “fear gauge,” known as the BVIV index, has seen a significant increase of 20% in the past 24 hours, reflecting growing investor anxiety over intensifying selloff in cryptocurrencies. The BVIV index measures the 30-day implied or expected volatility in Bitcoin and reached a value of 46.45%—marking the largest single-day spike since February 5, a date when the crypto market experienced a substantial crash.
As of midday on June 3, Bitcoin was trading just below $66,000, continuing to face downward pressure as digital assets grapple with market fluctuations. Over the past week, Bitcoin (BTC) has declined by 10%, despite U.S. stocks reaching record highs, leading to concerns among investors about the disconnect between these markets.
The recent surge in the BVIV index suggests a potential rush of retail investors moving to sell their holdings, exacerbating the already present selling pressure. In the last 24 hours, Bitcoin has fallen by 6%. This volatility comes after a two-month stretch of relative calm, where Bitcoin’s price steadily increased during March and April before experiencing a slight 4% dip in May.
The spike in the BVIV index also indicates that traders may start aggressively purchasing options as a hedge against further declines in the cryptocurrency market. On February 5, the index soared by more than 50% within a single day, climbing above 90% as Bitcoin’s price fell to its lows of $60,000 for the year.
Current predictions from market analysts suggest that Bitcoin’s price could potentially sink to around $50,000 amid the ongoing selloff. Investors are particularly concerned about the widening gap between cryptocurrency and stock market performances; traditionally, these markets have shown some level of correlation, but now crypto assets are declining as equities achieve consecutive all-time highs. This disconnect has only added to the uncertainty surrounding digital assets and the broader cryptocurrency market.
