Bitcoin volatility indicator issues a warning signal, and the market may face severe fluctuations.

[Coin World] Recently, an interesting signal has appeared in the market: the price spread between the implied volatility index of Bitcoin (BVIV) and the S&P 500 volatility index (VIX) has broken through the previous trading range. What does this mean? In simple terms, the market is betting that the fluctuation of Crypto Assets in the coming days will significantly exceed that of the traditional stock market.

From a trading perspective, the widening of this price difference actually brings new opportunities for pairs trading players - they can capture relative value through cross-asset volatility operations between Bitcoin and stocks. Hedge funds and quantitative teams are estimated to have already set their sights on this wave of market, after all, the volatility spread is their cash cow.

However, ordinary investors can also read some clues from it: when BVIV rises relative to VIX, it often indicates that the crypto market is about to enter a period of more intense price volatility. It's hard to say whether it will rise or fall, but fluctuations are certainly inevitable.