Bitcoin’s (CRYPTO: $BTC) so called “fear gauge” has risen 20% in the last 24 hours as investors grow increasingly concerned about the accelerating selloff in cryptocurrencies.
Known as the BVIV index, the fear gauge measures the 30-day implied or expected volatility in Bitcoin. It has risen 20% in the past day to reach 46.45%.
That rise in the BVIV index is the biggest single-day spike since Feb. 5 when the crypto market suffered a sizable crash.
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At midday on June 3, BTC was trading just below $66,000 U.S. as downward pressure continues to be exerted on digital assets.
Bitcoin (BTC) has fallen 10% in the past seven days even as U.S. stocks hit record highs.
The fear gauge is jumping again following two months of relative calm. The price of BTC rose in March and April of this year before falling a modest 4% in May.
However, the selling in Bitcoin and other cryptocurrencies such as Ethereum (CRYPTO: $ETH) has accelerated to start the month of June. In the last 24 hours, BTC has declined 6%.
The BVIV index spiking by 20% indicates that retail investors are likely to head for the exits, adding to the selling pressure.
At the same time, traders are likely to aggressively buy options to protect against further downside risks in crypto.
On Feb. 5th of this year, the BVIV index surged more than 50% in a day, rising above 90%, as Bitcoin fell to $60,000 U.S., its low for the year.
Some analysts and prediction markets now forecast that Bitcoin’s price could drop to $50,000 U.S. amid the current selloff.
Many investors are also worried about the growing divergence between stocks and crypto, which have historically moved in tandem with each other.
However, crypto is now sinking as stocks hit successive all-time highs.
