Bitcoin’s price has sharply declined, pushing its volatility indicator, BVIV, to nearly 100 percent—its highest level since the sudden FTX crisis in 2022. This indicator reflects extreme market fear and uncertainty, signaling that investors are anticipating unexpected price fluctuations. As the largest and most well-known cryptocurrency, Bitcoin has experienced significant price swings in recent months, recently dropping to around $60,000, well below its recent highs. This decline has contributed to broader instability in the crypto market and increased investor concern. The 2022 FTX collapse, caused by liquidity issues leading to bankruptcy, was a major shock to the crypto industry and negatively impacted confidence in Bitcoin and other cryptocurrencies. The current situation suggests that market confidence has not yet fully recovered. Experts warn that such volatility in Bitcoin’s price serves as a risk alert for investors, advising caution. Future stability in the crypto market will depend on global financial conditions, regulatory measures, and the health of crypto exchanges.
Source: coindesk
