Bears Battle Critical Support Zone As BTC, Stock, and Gold Volatility Index Surge
Bitcoin’s The price is definitely walking through the critical support zone amid a widening advance in volatility indices across asset classes.
The leading cryptocurrency by market value dropped nearly 2.5% to $108,000 in 24 hours. It goes into Main support zone of $ 107,000 to $ 110,000, which, if breached, would mark a significant weakening of buying pressure and expose prices to deeper losses.
BTC’s annualized 30-day implied or expected volatility, as measured by Volmex’s BVIV index, climbed above 50%, maintaining the gains seen during Last Friday’s leverage flushed out.
The index is up more than 21% since Bitcoin began its pullback from the October 6 record high above $124,000. This increase features growing The dynamic like Wall Street In the crypto market, where volatility tends to advance in selling prices.
The upswing in BTC volatility was marked by short and near-dated puts trading at a 5% to 9% volatility premium to calls, reflecting heightened fears of a wrapped selloff, according to deribit data. Put options offer insurance against potential weakness in the underlying asset. Traders typically buy puts to hedge their holdings in the spot market or to profit from an anticipated market selloff.
Speaking of Wall Street, its own gauge, the VIX Index, rose 22% to 25.43 on Thursday, the highest since May 7. The index is up 56% since last Friday.
Similarly, the CBOE Gold Volatility Index (GVZ) jumped 20% to 32.78 on Thursday, reaching its highest level since October 2022. The price of the yellow metal per ounce rose to a fresh lifetime high of $4,380 per ounce.
The concurrent rise in volatility indices across equities, gold, and cryptocurrencies underscores a broad-based risk-off mood likely driven by Signs of liquidity stress in the US financial system.
