The VIX index, known as the “fear index” that predicts stock market fluctuations, has rebounded sharply. It has risen more than 8% in just 24 hours, and is up nearly 17% in the past five days.
this movement It occurs amid high volatility not only in the stock market but also in the global market.. Both the S&P 500 (SPX), which comprises 500 stocks of large U.S.-listed companies, and a range of assets, including gold and Bitcoin (BTC), posted sharp declines over the past 24 hours. In the case of stock indexes and metals, declines occur after new highs.
The VIX measures the expected volatility of the S&P 500 Index over the next 30 days from option prices. Therefore, when it increases rapidly, it is usually interpreted as a sign of the level of fear or nervousness among investors.
The current strong rally has coincided with declines in various assets. Reinforcing the idea of holistic adjustment of risk appetite. This behavior is not limited to a single market; stocks, merchandise And cryptocurrencies.
market uncertainty
overall market decline Demonstrates investor caution in the face of uncertainty. A variety of changes have left businesses uncertain whether macroeconomic tensions will worsen given tariff wars and geopolitical disputes.
US President Donald Trump announced Thursday night that he will reveal his choice to replace Federal Reserve Chairman Jerome Powell on Friday. This measure aims to align monetary policy with the president’s expectations of lower interest rates.
Still, analysts caution that certain declines may be natural and a necessary pause before the rally continues. Ed Yardeni, president of Yardeni Research, said of gold: “In a bull market, the normal pattern would be for the price to consolidate around that price and then correct back to $5,000.”
“The amazing thing is that it went from $3,000 to $5,500 without any significant correction… So far, this is more of a frenetic rally than a traditional bull market for precious metals,” the expert added.
Pressure from FED measures
federal reserve system Interest rates were left unchanged on Wednesday.. “Bitcoin is facing difficulties in maintaining psychological support at USD 88,000,” said Carolina Gama, country manager at BitGet exchange. He told CriptoNoticias that the action “reflects an environment of caution among investors.”
The board argues that the Fed’s decision was “already widely priced in by the market.” As a result, the report said, “a cautious and data-driven stance reinforces the recognition that further cuts should only occur before the end of the year,” and “only if there are clear signs of economic deterioration.”
But he stressed that “stabilized interest rates keep liquidity in the financial system at a comfortable level” and help stabilize the dollar, which has lost 10% in value last year. In this framework, he explains: Cryptocurrency market’s contained reaction is “consistent”Meanwhile, “investors are reassessing their positioning and risk appetite.”
Looking ahead, Gama predicts, “The combination of stable monetary policy and expectations for easing in the second half of 2026 could strengthen Bitcoin’s role as a hedging asset in the medium term.” “While technical bias remains challenging in the short term, the macroeconomic backdrop continues to support the resilience of the crypto market and its growing adoption,” it acknowledged.
Technical analysis shows that the asset continues to trade below its 50-day, 100-day, and 200-day exponential moving averages. These references are available at USD 91,195, USD 94,590, and USD 98,345 respectively. In other words, “the bearish bias remains in the short term,” Gama said.
Regarding the indicators of momentumthe Relative Strength Index (RSI) on the daily chart has retreated to 42, indicating that the selling momentum is expanding. As he noted, “If this indicator moves towards the oversold zone, a correction move could gain momentum.”
(Tag Translation) Bitcoin (BTC)
