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Rare Market Volatility Signal Points at higher Bitcoin prices in 6 to 12 months – Dan Tapiero

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On April 7, the CBOE Volatility Index (VIX) posted a rare spike at 60, a level seen as a barometer of intense market fear and uncertainty. According to Dan Tapiero, CEO of 10TFund, the VIX hits 60 Only five times in the last 35 years, and the data suggests a rebound for risk assets such as Bitcoin (BTC) in 6 to 12 months.

Cryptocurrencies, bitcoin prices, market — *CBOE Volatility Index. Source: Cointelegraph/TradingView*

VIX, which is widely considered a “gauge of fear,” reflects the investor’s expectations of the market chaos based on the trade of S&P 500 options. As described in the chart, extreme spikes were seen in 2008 and 2020, usually in conjunction with the bottom of the market, where the sellers driven by panic prepared the road for entries in the market entries.

In this regard, Tapiero argues that the current spike is no different, with the worst of market fears that are likely to be “priced at,” which sets the stage for a positive future. Tapiero said “odds are in favor of the better future.”

Also, Julien Bittel, head of Macro Research at Global Macro Investor (GMI), Supported Tapiero’s claims and said tech stocks have been in their most oversold since the COVID-19 crash, with more than 55% of the NASDAQ 100 stock posted a 14-day RSI below 30.

Small Explained That after Vix grabbed 60 last week, it indicated uncertainty, pouring out fear of investors. Briefly pressing the US Investors Intelligence Survey, Bittel compared the current emotion of bullish of 23.6% to the lowest reading since December 2008.

In addition, the American Association of Individual Investors (AAII) Survey Respondents are currently 62% bearish, which reflects the highest bearish reading since March 2009. Bittel said,

“In other words, we return to the same level of fear marked the bottom of the equity market after the global financial crisis.”

This widespread fears, alongside a rare VIX spike, sets for market entries on property such as Bitcoin, as the recovery of liquidity in the market will inevitably flow back to risk assets.

Analyst warned trends in bitcoin vix were bearish

While macroeconomic experts have highlight the likelihood of a bullish outcome for risk assets, analyst markets Tony Severino suggested That the ratio of Bitcoin/VIX can also lead to a bear market. In a recent -only X post, Severino predicted that Bitcoin could have entered this cycle, but remained open about a possible change in opinion by the end of April.

As the chart describes, Severino mentioned a seller’s signal at the beginning of January. The analyst used the Elliott Wave theory model to determine the current bearish conditions and said it was still early to say that Bitcoin would be bullish based on Vix’s relationship.

This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.