Bitcoin/VIX Ratio Hits 1903, Suggests Market Bottom

On April 13, an analyst named James Van Straten released a chart analysis indicating that the current market sell-off, triggered by the uncertainty surrounding Trump's tariff policy, began on April 3. Since then, the market has experienced intense volatility, with panic spreading to both stocks and bonds. The price of gold surged to a historic high, while the US Dollar Index (DXY) dropped below the 100 level for the first time since July 2023. The CBOE Volatility Index (VIX) soared to its highest level since August of the previous year, and the Bitcoin/VIX ratio touched a long-term trend line. Historical data suggests that this often signals a bottom in the Bitcoin price.

According to TradingView data, the current Bitcoin/VIX ratio has reached 1903 points, touching the long-term trend line. The last time this trend line was effective was during a period of market turbulence caused by the unwinding of the Yen carry trade, during which Bitcoin found support around $49,000. In fact, this is the fourth time the ratio has touched the trend line and marked a market bottom: similar patterns were observed during the COVID-19 crisis in March 2020 and earlier in August 2015, both followed by bull markets. If this trend line continues to provide reliable support, it may indicate that Bitcoin has once again established a long-term bottom.