Recent data shows that the implied volatility index of Bitcoin has reached an unprecedented level of correlation with the volatility index of the S&P 500. The correlation coefficient of these two indicators has climbed to 0.88 over the past 90 days, setting a new historical high, and currently remains at a high level of 0.75. This phenomenon highlights the increasingly close relationship between the volatility of the crypto assets market and that of the traditional stock market.

Industry experts believe that this phenomenon reflects the dominant role of Wall Street institutional investors in the current cryptocurrency market cycle. Markus Thielen, founder of 10x Research, pointed out that institutional investors are using a strategy of selling a large number of call options to suppress volatility, which makes Bitcoin's price movements increasingly influenced by traditional market risk appetite.

It is worth noting that since the beginning of this year, the Bitcoin 30-day implied volatility index (BVIV/DVOL) has decreased from 67% to 42%, while during the same period, the price of Bitcoin has increased by 26%. This breaks the usual pattern of Bitcoin price moving in the same direction as its volatility index, further corroborating the changes in market dynamics.

The emergence of this trend not only reflects the maturity of the crypto assets market but also indicates that Bitcoin may be more influenced by macroeconomic factors and the sentiment of traditional financial markets in the future. For investors, this means that when formulating investment strategies, they may need to consider a broader range of market indicators and the global economic situation.

As the participation of institutional investors continues to increase, the boundaries between the Crypto Assets market and traditional financial markets are gradually becoming blurred. This integration may bring new opportunities and challenges, and investors need to remain vigilant and adapt to this rapidly evolving market environment.