Cointelegraph by Biraajmaan Tamuly
2025-05-13 18:20:00
cointelegraph.com
Key Takeaways:
-
Bitcoin price holds above $100,000, driven by “risk-on” sentiment after the CBOE Volatility Index (VIX) dropped to 20.
-
The Bitcoin Bull Score Index surged to 80, and the Fear & Greed Index suggests growing optimism, with historical patterns indicating potential for further price gains.
Bitcoin (BTC) price continues to consolidate higher above $100,000 after the CBOE Volatility Index (VIX) dropped to its 30-year average of 20, down from a peak of 60 earlier in 2025. This decline follows a US-China trade deal on May 12, which introduced a 90-day tariff pause and a 115% reduction on both sides.
The agreement has fueled a “risk-on” sentiment, boosting Bitcoin and equities as investors lean into higher-risk assets, according to Bitcoin network economist Timothy Peterson. The analyst said,
“$VIX dropped substantially yesterday on news of a potential China trade deal. It is now at ‘normal’ levels. This will be a ‘risk on’ environment for the foreseeable future.”
Adding to the bullish sentiment, the US Consumer Price Index (CPI) inflation rate dropped to 2.3% year-over-year in April 2025, the lowest since February 2021, down from 2.4% in March and below consensus forecasts of 2.4%. This softer-than-expected CPI reading signals easing inflationary pressure, potentially increasing the likelihood of Federal Reserve interest rate cuts in 2025, assuming other economic indicators align.
With respect to the current macroeconomic dynamics—lower volatility, cooling inflation, and a trade war truce- it creates favorable market conditions for Bitcoin.
Earlier this month, Peterson noted that BTC could reach $135,000 within 100 days, citing a drop in the CBOE Volatility Index (VIX) from 55 to 25, signaling a “risk-on” environment. With 95% accuracy, his model links low VIX levels to increased investor confidence in riskier assets like Bitcoin.
Related: Bitcoin shrugs off US CPI win as Binance CEO says BTC ‘leading pack’
Bitcoin bull score index reaches yearly high
After posting one of its least bullish phases in two years during April, Bitcoin sentiment flipped drastically to its highest reading in 2025. Data from CryptoQuant indicated a dramatic rise in the Bitcoin Bull Score Index, soaring from 20 to 80, a level historically associated with significant price surges.
This shift, driven by rising spot demand outpacing supply, reflects patterns observed after the April 2024 halving, suggesting Bitcoin could be poised for further gains.
Likewise, Bitcoin researcher Axel Adler Jr noted that while the Bitcoin Fear & Greed Index is climbing, currently at 53.3%, it remains below the “overloaded” zone above 80%. The analyst discussed the possibility of a market “upswing,” expressing hope for a successful test and surpassing Bitcoin’s all-time high near $110,000.
Related: Bitcoin profit taking at $106K the first stop before new all-time BTC price highs
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Explore new destinations with ease using the Garmin Drive 52 GPS Navigator! With over 17,988 ratings and a solid 4.4/5-star rating, this GPS system has been a top choice for travelers. Over 500+ units were bought in the past month, all for only $144.99.
This 5″ GPS navigator comes with essential driver alerts, real-time travel data, and external memory storage. The simple on-screen menus and bright, easy-to-see maps make it easy to navigate wherever you are. Plus, it’s road trip-ready with The HISTORY Channel database, featuring notable historic sites and much more to enhance your journey.
Don’t miss out—get your hands on the Garmin Drive 52 today for a smoother ride ahead! Buy Now for $144.99 on Amazon!
Help Power Techcratic’s Future – Scan To Support
If Techcratic’s content and insights have helped you, consider giving back by supporting the platform with crypto. Every contribution makes a difference, whether it’s for high-quality content, server maintenance, or future updates. Techcratic is constantly evolving, and your support helps drive that progress.
As a solo operator who wears all the hats, creating content, managing the tech, and running the site, your support allows me to stay focused on delivering valuable resources. Your support keeps everything running smoothly and enables me to continue creating the content you love. I’m deeply grateful for your support, it truly means the world to me! Thank you!
BITCOIN bc1qlszw7elx2qahjwvaryh0tkgg8y68enw30gpvge Scan the QR code with your crypto wallet app |
DOGECOIN D64GwvvYQxFXYyan3oQCrmWfidf6T3JpBA Scan the QR code with your crypto wallet app |
ETHEREUM 0xe9BC980DF3d985730dA827996B43E4A62CCBAA7a Scan the QR code with your crypto wallet app |
Please read the Privacy and Security Disclaimer on how Techcratic handles your support.
Disclaimer: As an Amazon Associate, Techcratic may earn from qualifying purchases.