Weeks after the second half of 2025, it is fair to say that Bitcoin and global financial markets have seen this almost this year. From global trade wars to actual conflicts between countries (which involve dangerous military action), the markets were subject to various forms of external pressure throughout the year.
As a result, the world has seen a great deal of correlation and direct relationship between traditional financial markets and the encryption market. While the American stock market and Bitcoin have not been particularly moved side by side in recent months, there is no denial of a relationship between the asset categories.
What does the traditional fluctuation mean for BTC?
In a new post on the social media platform X, CEO of Alphractor and founder Joao Wedson research In the relationship between Bitcoin and the American stock market (through the S&P 500). According to the encryption expert, the first encrypted currency shows a low relationship with the CBOE (Vix) fluctuations index, which tracks the market expectations for the S&P 500 index.
For context, volatility indicates how quickly prices change in a short period and are often seen as a way to measure morale in the market. Weedson mentioned that the VIX index, also known as the Fear Index, is widely used as a risk heat scale among the participants in traditional financial markets.
According to Leeson, price Bitcoin tends historically To move more independently and significantly the following year, the more it is negatively associated with the S&P 500 index, especially during the low VIX periods. This increased volatility is often translated into large prices in the past, according to the analyst.
Weeson said:
In other words: Do not waste hours in the BTC analysis against the S&P 500 when the BTC’s connection with Vix is low or negative – this is usually BTC is a higher chance to enter an explosive stage.
Source: @joao_wedson on X
The analyst in the series said that on the other side, when Vix is high, it is worth looking at the relationship between Bitcoin and American stock markets, as fear in the end can affect the first behavior of the first. However, Wedson note that Vix is currently decreasing, and as such, the S&P 500 index may not provide great assistance in analyzing the next step for Bitcoin.
Widson concluded that more BTC is separated from traditional fluctuations (Vix), the stronger as an independent origin. In the end, this may be a positive sign of the Bitcoin price and provides new opportunities for investors looking to enter the market.
Bitcoin price at a glance
From writing these lines, the BTC value is estimated at $ 117888, which reflects any large price movement during the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Distinctive image from Istock, tradingvief chart
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The post How Bitcoin Is Reacting To The Falling S&P 500 Volatility Index: Expert first appeared on Investorempires.com.
