Looking at the chart, Bitcoin's volatility index (VIX) is only 4 basis points from its 2008 level, which is in line with the sell-off that has occurred since March 2008. The correlation between the S & P 500 index and Bitcoin hits a new high. However, the VIX and the S & P index are negatively correlated, which means that when the VIX index rises, the market, the S & P index, falls. Therefore, the negative correlation between BTC and VIX will indicate the plight of Bitcoin. When the correlation between BTC and the S & P 500 Index reached a new high, the correlation between BTC and VIX declined. However, as of press time, BTC-VIX correlation seems to have stabilized at -0.455.
Note: VIX was developed by CBOE and is a measure of 30-day forward volatility expectations derived from SPX option prices. It is used by investors to measure the level of fear, risk or stress in the market. More precisely, VIX is a signal of the premium of an option, so it is a potential sell signal for investors who want a premium.