Analyst: Market fluctuation indicators still point to Bitcoin (BTC) reaching $135,000 within 100 days.

Source: Cointelegraph Original: "Analyst: Market volatility indicators still point to Bitcoin (BTC) reaching $135,000 within 100 days"

Key Points:

After the Chicago Board Options Exchange Volatility Index (VIX) fell to 20, Bitcoin prices remained steadily above the $100,000 mark, driven by "risk appetite" sentiment.

The Bitcoin bull market index has surged to 80, while the fear and greed index shows that market optimism is continuously strengthening. Historical data patterns indicate that prices may rise further.

The price of Bitcoin continues to consolidate above $100,000 after the volatility index (VIX) of the Chicago Options Exchange dropped from a peak of 60 at the beginning of 2025 to an average level of 20 over the past 30 years. This significant decline follows the US-China trade agreement reached on May 12, which introduced a 90-day tariff suspension period and a 115% tariff reduction measure for both parties.

Chicago Options Exchange Volatility Index Chart. Source: X.com

According to Bitcoin network economist Timothy Peterson, this protocol has effectively stimulated market "risk appetite" sentiment, boosting the performance of Bitcoin and the stock market as investors shift towards high-risk assets. The analyst stated: "$VIX significantly retreated yesterday under the influence of potential China trade agreement news and has now returned to 'normal' levels. This will create a 'risk appetite' investment environment in the foreseeable future."

Further enhancing the bullish market sentiment is the U.S. Consumer Price Index (CPI) inflation rate, which dropped to 2.3% year-on-year in April 2025, marking the lowest level since February 2021, down from 2.4% in March and the market's general expectation of 2.4%. This lower-than-expected CPI data clearly conveys the signal that inflation pressures are easing, and assuming other economic indicators remain consistent, this could significantly increase the likelihood of the Federal Reserve implementing interest rate cuts in 2025.

In terms of the current macroeconomic landscape—lower volatility, cooling inflation, and a temporary truce in the trade war—an extremely favorable market environment has been created for Bitcoin.

Earlier this month, Peterson pointed out that as the Chicago Board Options Exchange Volatility Index (VIX) dropped from 55 to 25, it signaled the formation of a "risk appetite" environment, with BTC prices expected to reach $135,000 within 100 days. His predictive model associates low VIX levels with increased investor confidence in risk assets such as Bitcoin, with a high accuracy rate of 95%.

After experiencing the least active bullish phase in nearly two years in April, the Bitcoin market sentiment saw a dramatic reversal, reaching the highest level since 2025. CryptoQuant data shows that the Bitcoin Bull Market Index surged sharply from 20 to 80, a level that has historically been closely related to significant price increases.

Bitcoin: Bull Market Index. Source: CryptoQuant

This shift is primarily driven by spot demand exceeding supply, displaying a pattern similar to that after the halving in April 2024, suggesting that Bitcoin may be poised for a further increase.

Similarly, Bitcoin researcher Axel Adler Jr pointed out that although the Bitcoin Fear and Greed Index is steadily rising, currently at 53.3%, it is still far from the "overheated" zone of over 80%. The analyst discussed the potential "upward trend" that may emerge in the market and expressed expectations for Bitcoin to successfully test and break through the historical high of nearly $110,000.

Related recommendations: Bitcoin (BTC) is just one rise away from reaching a new high, but the overly enthusiastic bulls indicate that the market is "overheated."

This article does not contain any investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.