Bitcoin to VIX Ratio Hints at Potential Long-Term Bottom for BTC Price
Amid a week of intense market volatility, a key metric may be signaling a potential long-term bullish outlook for bitcoin.
The recent equity sell-off, which began on April 3 due to uncertainties surrounding President Donald Trump’s tariff policies, has been marked by sharp market fluctuations in both directions. These moves have affected equities and bond markets, while gold reached new all-time highs, and the DXY Index dropped below 100 for the first time since July 2023.
In this turbulent environment, the S&P Volatility Index (VIX)—widely known as Wall Street’s “fear gauge”—has surged to its highest level since August of last year. Here’s where things get interesting for bitcoin.
The ratio of bitcoin to the VIX has currently hit 1,903, aligning with a long-term trendline that last acted as a support during the unwinding of the yen carry trade. At that point, bitcoin had found a bottom at approximately $49,000.
This is the fourth time the ratio has hit this trendline, which historically has marked a turning point. The first two instances occurred in March 2020 during the COVID-19 crisis and in August 2015, with both times followed by significant price rallies.
If this trendline continues to hold as reliable support, it could signal that bitcoin has once again found its long-term bottom, potentially setting the stage for a future rally.
