The 90 day correlation coefficient between the Bitcoin Volatility Index and the S&P 500 VIX has reached a historic high

According to CoinDesk, data shows that the 90 day correlation coefficient between Bitcoin's 30 day implied volatility index (BVIV/DVOL) and the S&P 500 volatility index (VIX) has reached a historic high of 0.88, indicating a significant increase in the linkage between the cryptocurrency market and US stock volatility. The current correlation coefficient remains at a high level of 0.75. Analysts point out that this phenomenon reflects that Wall Street institutions are dominating the current cryptocurrency market cycle. Markus Thielen, founder of 10x Research, stated that institutional investors compress volatility by selling a large number of call options, making the price trend of Bitcoin increasingly influenced by traditional market risk preferences. Since the beginning of this year, the BVIV index has dropped from 67% to 42%, while the price of Bitcoin has risen by 26% during the same period, breaking the historical pattern of both fluctuating in the same direction.