Analysis: The VIX index surged 74%, which may indicate that Bitcoin has reached a local bottom

ChainCatcher news, according to CoinDesk, the Chicago Board Options Exchange Volatility Index (VIX) surged 74% yesterday, marking the largest single-day increase since February 2018 and the second highest in history. Analysis indicates that this surge was triggered by market panic following the Federal Reserve's 25 basis point rate cut and Powell's hawkish remarks, causing Bitcoin to briefly drop below $100,000, while U.S. stocks fell about 3%.

Historical data shows that a significant spike in VIX often signals a local bottom for Bitcoin. For instance, after VIX surged 116% in February 2018, Bitcoin rebounded from $6,891 to over $11,000; when VIX rose 65% in August 2024, Bitcoin bounced back from $54,000 to $64,000.