Bitcoin volatility alert sounded: BVIV approaches key support zone, may face 'volatile storm' market trend Odaily Planet Daily News: Market analysts remind traders to closely monitor the potential "Volmageddon" of Bitcoin in the near future, which refers to rapidly rising volatility and is often accompanied by price declines. This warning is mainly based on the trend of Bitcoin's 30 day implied volatility index (BVIV). BVIV is often regarded as the crypto market version of the "fear index" (VIX), and its changes are influenced by option demand. Options, as derivatives used by investors to hedge against volatile market risks, typically have higher implied volatility as demand increases, and vice versa. At present, BVIV is hovering in the range of 34% -38%. Historical data shows that this region has repeatedly been a key position before volatility bursts, often accompanied by a pullback in Bitcoin prices. For example, at the end of May this year, BVIV entered a similar range, and then the price of Bitcoin fell from $74000 to below $60000 in less than a week, while BVIV showed a significant increase. Similar trends also occurred before the market crash in early February this year and during the adjustment phase after Bitcoin hit a historic high in October last year. Although historical trends cannot guarantee a repeat in the future, the market generally believes that volatility has mean reversion characteristics. Usually, after the low volatility phase, it is easy to experience volatility amplification, while the high volatility phase may gradually return to stability. BVIV is still below its 30 day and 200 day simple moving averages, indicating that the current market volatility costs are relatively low and close to historical support areas. This may indicate that volatility is about to rebound, and the market may usher in a new round of volatility. As of now, the price of Bitcoin remains above $64000 and has been steadily consolidating since last Wednesday. Although some analysts have pointed out that Bitcoin spot ETFs have seen net inflows for two consecutive weeks, the current inflow is still relatively limited compared to the billions of dollars withdrawn during the previous eight week outflow period. Traditional market volatility indicators are currently emitting different signals. The KOSPI VIX in South Korea currently exceeds 70%, reaching the highest level since the 1990s; The US stock market panic index VIX rose more than 12% last Friday, rising to around 18% and maintaining around that level. However, these volatility levels have persisted for several months, indicating that the stock market has not yet experienced significant panic.