The Bitcoin Fear Index BVIV surged nearly 20%, marking the largest single-day increase since February 5

According to CoinDesk, the Bitcoin Fear Index BVIV surged nearly 20% on Tuesday, marking the largest single-day increase since February 5. BVIV measures the 30-day implied volatility of Bitcoin, and this surge to 46.45% indicates that panic has re-emerged in the market after two months of calm.

For the past two months, the sentiment in the Bitcoin market has remained calm, even as it fell from a May high of $82,000 to $75,000 last week, with BVIV hovering around 40%, the lowest point of the year, indicating that the decline at that time was orderly selling rather than panic. However, on Tuesday, the spot price of Bitcoin dropped over 6% to $66,000, causing BVIV to spike sharply. The index's trend increasingly resembles Wall Street's VIX Fear Index, showing an inverse correlation with the spot price of Bitcoin. Whether Tuesday's significant surge is just a one-day fluctuation or the beginning of a sustained volatility cycle remains to be seen.