VIX Surges Amid Market Turmoil Following Fed Rate Cut

According to PANews, the Chicago Board Options Exchange Volatility Index (VIX) experienced a significant surge of 74% yesterday, marking its largest single-day increase since February 2018 and the second-highest in history. Analysts attribute this spike to market panic triggered by the Federal Reserve's 25 basis point rate cut and hawkish remarks from Fed Chair Jerome Powell. This turmoil led to Bitcoin briefly falling below $100,000 and a roughly 3% decline in U.S. stock markets. Historical data suggests that a sharp rise in the VIX often signals a local bottom for Bitcoin. For instance, after the VIX soared by 116% in February 2018, Bitcoin rebounded from $6,891 to over $11,000. Similarly, in August 2024, when the VIX increased by 65%, Bitcoin recovered from $54,000 to $64,000. These patterns indicate that significant volatility in the VIX can precede notable recoveries in Bitcoin's value.