Opinion: VIX index records the second largest single-day increase in history, indicating that BTC may have reached a local bottom.

According to CoinDesk, the Chicago Options Exchange Volatility Index (VIX) soared 74% on December 18, marking the second largest single-day increase since February 2018, and the second highest in history. Analysis indicates that this surge was triggered by the market panic caused by the 25 basis point rate cut by the Federal Reserve and hawkish remarks from Powell, leading to Bitcoin briefly dropping below $100,000 and a roughly 3% decline in the US stock market. Historical data shows that a significant surge in VIX often indicates that BTC is approaching a local bottom. For example, after VIX big pump116% in February 2018, BTC rebounded from $6,891 to over $11,000. When VIX rose 65% in August 2024, BTC rebounded from $54,000 to $64,000.

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