Bitcoin’s Volatility Now Moves With Wall Street as Correlation With VIX Hits Record High
Bitcoin’s market behavior is increasingly reflecting that of traditional financial assets, with new data revealing a historic alignment between its volatility and Wall Street’s primary fear gauge.
According to TradingView, the 90-day correlation between Bitcoin’s 30-day implied volatility — as measured by Volmex’s BVIV and Deribit’s DVOL indices — and the S&P 500’s VIX recently surged to a record high of 0.88. While the reading has since moderated to 0.75, the data points to a deepening link between crypto and broader equity markets.
This elevated correlation underscores a significant shift: Bitcoin’s implied volatility is now behaving much like the VIX, which typically falls during risk-on rallies and rises during periods of heightened uncertainty.
The trend also reflects broader market dynamics. Bitcoin has gained 26% so far in 2025, while BVIV — its implied volatility — has dropped from 67% to 42%. Meanwhile, the VIX has declined 11%, in line with an 8% rally in the S&P 500.
Markus Thielen, founder of 10x Research, says this shift is largely driven by institutional players entering the crypto space with strategies rooted in traditional finance.
“Wall Street continues to dominate this cycle,” Thielen told CoinDesk. “Institutions are compressing volatility by selling out-of-the-money options — particularly calls — to enhance returns, mimicking equity income strategies.”
Rather than speculating on price direction, many professional traders are taking a yield-generation approach in crypto markets. As a result, BTC volatility is becoming more synchronized with legacy assets — responding to macroeconomic signals and investor risk appetite.
“Bitcoin is increasingly being viewed through the same macro lens as equities,” Thielen added. “Hedge funds and asset managers are using the same frameworks, which is pushing correlation higher.”
This alignment further blurs the line between crypto and traditional finance — with Bitcoin no longer acting as an isolated or purely speculative asset, but increasingly moving in tandem with global markets.
