Volatility indicators for Bitcoin (BTC) and the S&P 500 are cooling, signaling potential year-end bullish momentum.
Volmex’s 30-day Bitcoin implied volatility index (BVIV) fell to 51% annualized after spiking to nearly 65% during the mid-November sell-off that saw BTC drop from $96,000 to $80,000. Deribit’s DVOL shows similar swings, while the VIX, tracking S&P 500 volatility, has eased from 28% to 17%, reflecting a broader reduction in market panic.
The decline suggests fear is subsiding and bulls are regaining control. Bitcoin has recovered above $91,000, showing a negative correlation with its volatility index — a trend increasingly aligning BTC with traditional assets.
The easing volatility tracks rising expectations for a December Fed rate cut. Dr. Sean Dawson, head of research at Derive, told CoinDesk:
“Markets are stabilizing as rate-cut odds jumped from 39% to nearly 87%. Traders are still hedging, but far less than last week, reflecting renewed confidence.”
