90-Day Correlation Between Bitcoin Volatility Index and S&P 500 VIX Hits All-Time High

PANews reported on July 24 that according to CoinDesk, data showed that the 90-day correlation coefficient between the Bitcoin 30-day Implied Volatility Index (BVIV/DVOL) and the S&P 500 Volatility Index (VIX) hit a record high of 0.88, indicating that the linkage between the cryptocurrency market and the volatility of US stocks has significantly increased. The current correlation coefficient remains at a high level of 0.75.

Analysts pointed out that this phenomenon reflects that Wall Street institutions are dominating this round of crypto market cycle. Markus Thielen, founder of 10x Research, said that institutional investors have compressed volatility by selling a large number of call options, making Bitcoin price movements increasingly affected by the risk appetite of traditional markets. Since the beginning of this year, the BVIV index has dropped from 67% to 42%, while the price of Bitcoin has risen by 26% during the same period, breaking the historical pattern of the two fluctuating in the same direction.