Analyst: The VIX index has recorded the second largest single-day increase in history, indicating that Bitcoin may have reached a local bottom

According to CoinDesk, the Chicago Board Options Exchange Volatility Index (VIX) surged by 74% on December 18th, marking its largest single-day increase since February 2018 and the second-highest in history. Analysts pointed out that this surge was due to market panic triggered by a 25 basis point cut by the Federal Reserve and hawkish comments from Powell, causing Bitcoin to briefly fall below $100,000 and US stocks to drop about 3%. Historical data shows that a sharp rise in VIX often signals Bitcoin touching local bottoms. For instance, after VIX soared by 116% in February 2018, Bitcoin rebounded from $6,891 to over $11,000; when VIX rose by 65% in August of 2024, Bitcoin bounced back from $54,000 to $64,000.