The ratio of BTC to VIX is close to the yen's position unwinding wave, and crypto assets may face the bottom

The recent market fluctuations have been extremely severe, attracting much attention from investors. Yet, even amid this market turmoil, there is a glimmer of hope for Bitcoin’s long-term outlook.

The market turmoil began on April 3, when stocks fell sharply due to uncertainty over U.S. President Trump's tariff policy.

Since then, the market has continued to fluctuate violently. The panic spread to stock and bond markets, with gold prices hitting an all-time high and the U.S. dollar index (DXY) falling below 100 for the first time since July 2023.

As a result, the S&P Volatility Index (VIX), known as the "fear index", rose to its highest level since August last year. The VIX is seen as a key indicator of market uncertainty.

It is worth noting that the ratio of Bitcoin to VIX has now reached 1903 and has touched the long-term trend line.

The ratio had previously reached similar levels when a pullback in the yen carry trade sparked market volatility, with cryptocurrency prices bottoming out around $49,000.

In fact, this is the fourth time the ratio has touched this trend line. The same phenomenon occurred in the past during the peak of the COVID-19 crisis in March 2020 and in August 2015, and both times virtual currency prices rose.

Experts point out that Bitcoin-specific factors, such as the "halving cycle," are also influencing its long-term price trend.

If this trendline continues to function as reliable support, the idea that Bitcoin may have found a long-term bottom once again is strengthening.

With Bitcoin currently trading at $85,000, this ratio signal could become an important indicator for investors considering long-term holdings of cryptocurrencies.

Even when the overall market is in a state of instability, similar historical patterns may provide important references for investment decisions.