• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
  • Spin & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
vix bitcoin crypto danger stock market red flag Depositphotos_39351425_xl-2015
Nexo Logo

VIX Raising “Red Flag” On Stocks, Could Be Bearish For Bitcoin

Tony Spilotro by Tony Spilotro
2 years ago
in Bitcoin, Cryptocurrency news, Technical analysis
Reading Time: 2 mins read
Advertisement

Analysts rely on a variety of tools to tip them off about coming price action, with some offering better results than others. A top and bottom-sniping tool used to call the 2007 top in the stock market, is once again raising a red flag. Here’s why this could also be bearish for Bitcoin and the rest of the cryptocurrency market.

Stock Market Raises “Red Flag” Warning Sign, Analyst Warns Of “Impending Reversal”

The stock market pumped today on Jerome Powell’s monetary policy speech, while Bitcoin price tanked.

The S&P 500 set yet another daily all-time high even as the economy struggles, unemployment soars, the GDP shrinks, and the pandemic rages on.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Most signs point to the stock market being in a bubble that is ready to burst. Yet stimulus money has kept equities climbing to outrageous valuations.

Related Reading | Why Bitcoin Ditching Stock Market Correlation For Gold Is Bullish for BTC

But as the stock market sets a new high, it has created a bearish divergence with the VIX volatility index, which one former hedge fund and investor, Jesse Felder, claims signals “an impending reversal.”

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

This reversal signal was the key to timing the 2007 top ahead of the Great Recession, and the 2009 bottom when things finally began to turn around.

The signal is back, and it could end up hurting Bitcoin and the rest of crypto as much as it crushes the stock market.

 bitcoin btcusd vix sp500 spx

Volatility Index (VIX) Impact On Bitcoin (BTCUSD) & S&P 500 (SPX) | Source: TradingView

Bitcoin Bulls Beware: Crypto Collapsed The Last Time VIX Crushed Stocks

The crypto bubble is long in the past, but the greater financial market bubble continues to inflate.

The stock market has already recovered from its Black Thursday low completely and set a new all-time high on most major indices.

That day, crypto suddenly became tightly correlated to stocks, and Bitcoin flash crashed by over 50% alongside the S&P 500, gold, and nearly every other asset.

The correlation with Bitcoin turned from stocks to gold, helping propel the entire crypto market cap towards its first sustainable recovery. But that now could be at risk, thanks to a bearish divergence on the VIX index.

Related Reading | This Tool Has Called Nearly Every Bitcoin Top, And It Just Triggered Again

According to the Felder Report author Jesse Felder, the “VIX warning signal is flashing again as it did earlier this year.” “In short, the options market is sending a message that volatility going forward is likely to be greater than the stock market currently implies,” he added. 

The VIX measures the expected volatility of the S&P 500 but can have an enormous influence on total market volatility. And this is why the same signal also poses a threat to Bitcoin.

Tags: bitcoinbtcbtcusdBTCUSDTcryptostocksvixxbtxbtusd
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Tony Spilotro

Tony Spilotro

I'm Tony Spilotro. Behind the pseudonym, I'm a global remote work leader with a decade of award-winning content experience and excellence. Here, I explore my newfound passions pertaining to privacy, finance, economics, politics, cryptography, property rights, and other libertarian-esque views. I am a Bitcoin evangelist, maximalist, and educator whenever I can be, helping to spread its message of freedom from government control, monetary policy mismanagement, and passing the buck - literally – to future generations. My journey from a curious retail crypto investor to a serious Bitcoin advocate, trader, and technical analyst is an unusual one, but life-changing nonetheless and has become less about money and more about a long-overdue revolution. While a firm believer in the laws governing math and science, I am profoundly fascinated by the impact of astrology and astronomy including moon and solar cycles and planetary alignment and their ability to influence and potentially predict markets. It hasn't yet clicked for me as to how to put anything to use, but I consider it my current rabbit hole I can't yet dig out of. My perspective of growing up alongside the internet, the dot com era, the Great Recession, and roots in video games collecting coins and rare items caused Bitcoin to immediately make sense to me. Through all of these lenses, I seek to produce content that is educational and entertaining, and I thank you sincerely for taking the time to read what I have to say. Please follow me on Twitter at @tonyspilotroBTC and feel free to drop me a line if you would like to work together.

Related Posts

Bitcoin

Bitcoin Price Could Fall To $8,000, Says Guggenheim CIO

3 mins ago
Ethereum Uniswap UNI UNIUSDT

How Ethereum’s Uniswap Reached A Milestone Of $1 Trillion In Trading Volume

3 hours ago
bitcoin, ethereum

Bitcoin, Ethereum Exchange Inflows Suggest Sell-Offs Are Far From Over

4 hours ago
Phemex Mobile App Offers First Class Crypto Trading Even When You’re On The Go

Phemex Mobile App Offers First Class Crypto Trading Even When You’re On The Go

9 hours ago
Ethereum

TA: Ethereum Dips But Here’s Why ETH Could Start Fresh Increase

16 hours ago
The Nightly Mint: Daily NFT Recap

The Nightly Mint: Daily NFT Recap

17 hours ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Wildcoins Casino

Wildcoins Casino

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit

LBank Joins Plastiks in the Campaign to Efficiently Reduce Plastic Pollution

May 24, 2022

LBank Exchange Will List MegaDAO (MEGADAO) on May 25, 2022

May 24, 2022

NFT Crowdfunding & Fractionalization Protocol Confti Launched

May 24, 2022

MetaEstate Has Closed A Multi-Million Dollar Strategic Round of Funding Led by Matrixport and SevenX Ventures

May 24, 2022

YOP Finance Launches Three-Click Yield Farming Platform for DeFi

May 24, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win
  • Spin & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.