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The Bitcoin Volatility Index (BVIV), a key indicator measuring investor sentiment in the cryptocurrency markets, triggered renewed fear signals on June 3rd with a sharp rise. On Tuesday, the BVIV surged by approximately 20%, marking its largest daily increase since February 5th.
BVIV is known as an indicator that measures Bitcoin’s expected volatility over the next 30 days. The index’s rise to 46.45% indicates a significant shift in investor risk perception after nearly two months of relatively calm market conditions.
Volatility in the Bitcoin market has been low over the past two months. Even though the Bitcoin price fell last week from $82,000 in May to $75,000, BVIV (Bitcoin Viability) remained around 40%, its lowest level of the year. Analysts say this indicates that the decline was due to steady and controlled selling pressure rather than panic selling.
However, the picture changed on Tuesday when Bitcoin’s spot price fell by more than 6% to the $66,000 level. The sharp drop in prices increased investor demand for hedging, leading to a strong rebound in BVIV.
Market experts say that BVIV is increasingly exhibiting behavior similar to the VIX index, which is considered a fear indicator in traditional financial markets. The fact that the index moves inversely with the Bitcoin price also supports this view.
Experts say it is not yet clear whether the recent rise is merely a short-term reaction or the beginning of a longer period of volatility. Bitcoin price movements and trading in the options market in the coming days will play a critical role in determining investors’ risk perception.
This is not investment advice.
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