It was a very unstable week, but one measure is to show long-term bullish feelings for Bitcoin.
The shares began on April 3rd, spurred by President Donald Trump’s tariff-led uncertainty. Since then, every day has been marked by sharp movements in both directions. Panic has collided with both stocks and bond markets, with gold falling below 100 for the first time since July 2023.
In response, the S&P Volatility Index (VIX) – often referred to as the Wall Street “Fear Gauge” – has surged to its highest level since last August, and this is an interesting place for Bitcoin.
The Bitcoin to VIX ratio is currently at 1,903, and last time we touched on a long-term trendline that coincides with market volatility regarding the rewinding of the Yen carry trade. At the time, Bitcoin was at the bottom of around $49,000.
In fact, this is the fourth time this ratio hit the trend line and found its bottom. Previously, they touched the line during the peak Covid-19 crisis in March 2020, and initially in August 2015, both were followed by price rallies.
If this trendline continues to function as a reliable support, it could suggest that Bitcoin may have once again found its long-term bottom.
Read more: Bitcoin’s recent drawdown proves more than just a leveraged quick play