Bitcoin Tests Key Support as Volatility Spikes Across Markets
Bitcoin (BTC) is hovering near a critical support zone amid surging volatility across cryptocurrencies, equities, and gold, signaling broad risk-off sentiment. BTC has fallen roughly 2.5% over 24 hours to $108,000, trading within the $107,000–$110,000 range. A break below this level could intensify selling pressure and open the door to deeper losses.
Crypto Volatility Reflects Growing Market Caution
BTC’s 30-day implied volatility, tracked by Volmex’s BVIV index, has climbed above 50%, maintaining levels seen during last Friday’s leverage-driven sell-off. Since October 6, when BTC reached a record high above $124,000, implied volatility has jumped more than 21%, reflecting Wall Street-style dynamics where volatility rises sharply amid price declines.
Deribit data shows short-dated puts trading at a 5%–9% premium to calls, signaling heightened concern over potential extended sell-offs. Traders are using puts to hedge spot positions or profit from anticipated downside moves.
Risk-Off Sentiment Spreads Across Assets
Volatility is rising across traditional markets as well. The VIX index surged 22% to 25.43—the highest since May 7—and is up 56% since last Friday. Gold’s volatility, measured by the CBOE GVZ index, jumped 20% to 32.78, its highest since October 2022, even as gold prices reached a fresh all-time high of $4,380 per ounce.
The synchronized volatility surge across crypto, equities, and gold highlights a broad-based risk-off mood, likely fueled by emerging liquidity stress in the U.S. financial system.
