It took almost a few weeks in the second half of 2025, and it is fair to say that Bitcoin and the global financial market have almost seen this year. From the World Trade War to the real disputes between countries (including serious military action), the market has undergone various types of external pressure throughout the year.
As a result, the world has a direct relationship with a significant correlation between the traditional financial market and the encryption market. The US stock market and Bitcoin have not moved in recent months, but they do not deny the existence of the relationship between the asset class.
What does the traditional volatility of BTC mean?
In the new post of Social Media Platform X, Alphractal CEO and founder Joao Wedson explored the relationship between Bitcoin and US Equities Market (through the S & P 500 Index). According to Crypto Expert, Premier Cryptocurrency has a low correlation with the CBOE volatility index (VIX), which tracks the market expectations for the volatility of the S & P 500 index.
In the context, volatility indicates how fast the price changes in a short period of time. It is often considered a way to measure market sentiment. WEDSON mentioned that the VIX index, also known as Fear Index, is widely used as a dangerous thermometer among traditional financial market participants.
According to WEDSON, the price of Bitcoin tends to be more independent and larger in the low VIX period, especially whenever there is a negative correlation with the S & P 500 index. According to the analyst, this increase has often been converted to a significant price increase.
Wedson said:
In other words: Do not waste time to analyze the BTC vs. S & P 500 when the correlation between BTC and VIX is low or negative. This is generally when BTC is likely to enter the explosion stage.
Source: @joao_wedson on X
On the contrary, when the VIX is high, it is worth looking at the relationship between Bitcoin and the US stock market. The latter fear could affect the former behavior. However, WEDSON is currently decreasing VIX, and the S & P 500 index may not help to analyze the next movement of Bitcoin.
WEDSON concluded that the more BTC is separated from traditional volatility (VIX), the more powerful as an independent asset. Ultimately, this can be a positive sign of bitcoin prices and can offer new opportunities for investors to enter the market.
Bitcoin price at a glance
At the time of this article, BTC is about $ 117,888, which does not reflect significant price movement over the last 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Istock’s main image, TradingView chart
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