TechFlow news, on December 19, according to CoinDesk, the Chicago Options Exchange Volatility Index (VIX) surged 74% on December 18, marking its largest single-day gain since February 2018 and the second-highest level in history. Analysis suggests this sharp rise stemmed from market panic triggered by the Federal Reserve's 25 basis point rate cut and Chairman Powell's hawkish comments, causing Bitcoin to briefly fall below $100,000 and U.S. stocks to drop approximately 3%.
Historical data indicates that significant spikes in the VIX often signal a local bottom for Bitcoin. For example, after the VIX surged 116% in February 2018, Bitcoin rebounded from $6,891 to over $11,000. Similarly, when the VIX rose 65% in August 2024, Bitcoin recovered from $54,000 to $64,000.
