Bitcoin’s 30-day implied volatility surged nearly 20% Tuesday, marking its largest single-day rise since early February.
Bitcoin’s BVIV index, a measure of 30-day expected volatility, climbed nearly 20% to 46.45% Tuesday as BTC fell over 6% to $66,000. The spike represents the largest single-day increase since Feb. 5, signaling a shift from two months of subdued market sentiment.
Prior to Tuesday, the BVIV had remained near its year-to-date low of 40% despite BTC’s drop from $82,000 in early May to $75,000 last week. The index’s stability reflected orderly selling without panic. However, the sharp rise in volatility suggests traders are now aggressively hedging against further downside.
The last comparable surge occurred Feb. 5, when BVIV spiked over 50% to above 90% as Bitcoin crashed toward $60,000. While Tuesday’s move is smaller, the direction indicates renewed fear in the market.