Bitcoin's 'fear gauge' surges nearly 20%, its biggest jump since Feb. 5 crash
Bitcoin traders are finally showing more fear after a relatively calm two-month pullback. The BVIV, Bitcoin’s 30-day implied volatility gauge, jumped nearly 20% on Tuesday to 46.45%, its biggest one-day rise since Feb. 5. That move came as BTC fell more than 6% to around $66,000, signaling renewed demand for downside protection through options. Previously, even when Bitcoin slid from about $82,000 to $75,000, BVIV stayed near its year-to-date low around 40%, suggesting orderly selling rather than panic. Tuesday’s spike is still well below February’s extreme volatility, but it shows sentiment is shifting. Since Bitcoin ETFs brought more institutional participation, BVIV has increasingly moved opposite to spot price, similar to how the VIX behaves for stocks. The key question now is whether this is a brief fear spike or the start of a more volatile market regime.
