BTC Bears Defend Crucial Support Amid Rising Volatility in Crypto, Equities, and Precious Metals

Bitcoin Clings to Key Support as Volatility Surges Across Markets

Bitcoin (BTC) is hovering near a critical support zone amid rising volatility across crypto, equities, and gold, reflecting a broad risk-off sentiment among investors. Over the past 24 hours, BTC has dropped roughly 2.5% to $108,000, trading within the $107,000–$110,000 range. A breach of this level could weaken buying pressure and open the door to deeper losses.

Crypto Volatility Mirrors Wall Street Dynamics

BTC’s 30-day implied volatility, tracked by Volmex’s BVIV index, has climbed above 50%, maintaining levels seen after last Friday’s leverage-driven sell-off. Since BTC’s record high of over $124,000 on October 6, implied volatility has risen more than 21%, signaling Wall Street-style trading behavior where sharp price drops drive surging volatility.

Deribit data shows that short-dated put options are trading at a 5%–9% premium to calls, reflecting increased hedging activity and investor concern about further downside. Traders are buying puts to protect spot holdings or speculate on potential sell-offs.

Broader Risk-Off Mood Hits Multiple Assets

The spike in BTC volatility is mirrored in traditional markets. The VIX index, Wall Street’s gauge of fear, jumped 22% to 25.43—the highest since May 7—and is up 56% since last Friday. Gold’s volatility, measured by the CBOE GVZ index, surged 20% to 32.78, the highest level since October 2022, as gold prices hit a new record of $4,380 per ounce.

This synchronized rise in volatility across crypto, equities, and gold highlights a broad-based risk-off environment, likely driven by emerging liquidity stresses in the U.S. financial system.