Bitcoin Tests Key Support as Volatility Surges Across Markets
Bitcoin (BTC) is teetering near a critical support range amid a sharp rise in volatility across crypto, equities, and gold, reflecting broad investor caution. Over the past 24 hours, BTC has dropped roughly 2.5% to $108,000, trading within the $107,000–$110,000 zone. A breach of this level could trigger further losses as buying pressure eases.
Crypto Volatility Mirrors Wall Street Patterns
BTC’s 30-day implied volatility, tracked by Volmex’s BVIV index, has climbed above 50%, maintaining elevated levels seen during last Friday’s leverage-driven sell-off. Since hitting a record high above $124,000 on October 6, implied volatility has risen over 21%, signaling growing Wall Street-style market dynamics where volatility spikes during sharp price declines.
Deribit data shows short-dated put options trading at a 5%–9% premium to calls, reflecting heightened hedging activity. Traders are using puts to protect spot holdings or to speculate on further downside moves.
Risk-Off Sentiment Extends to Gold and Equities
Volatility is climbing beyond crypto. The VIX index surged 22% to 25.43—the highest since May 7—and is up 56% since last Friday. Gold’s volatility, measured by the CBOE GVZ index, jumped 20% to 32.78, its highest since October 2022, as gold prices reached a fresh record of $4,380 per ounce.
The synchronized spike in volatility across crypto, equities, and gold highlights a broad-based risk-off mood, likely fueled by emerging liquidity stresses in the U.S. financial system.
