Crypto and Gold Volatility Soars Amid Liquidity Jitters

As of October 17th, 2025, the cryptocurrency market is experiencing a significant spike in volatility, with Bitcoin's price hovering near a critical support zone. The leading cryptocurrency by market value has dropped nearly 2.5% to $108,000 in the past 24 hours, entering the key support zone of $107,000 to $110,000. This price movement has raised concerns, as a breach of this support level could mark a substantial weakening of buying pressure and expose Bitcoin to deeper losses.

The surge in volatility is not limited to the crypto market. The CBOE gold volatility index (GVZ) has jumped 20% to 32.78, reaching the highest level since October 2022, while the VIX index, Wall Street's fear gauge, has risen 22% to 25.43, the highest since May 2025. This concurrent rise in volatility indices across equities, gold, and cryptocurrencies underscores a broad-based risk-off sentiment, likely driven by signs of liquidity stress in the U.S. financial system.

Bitcoin's annualized 30-day implied or expected volatility, as measured by Volmex's BVIV index, has climbed above 50%, retaining gains seen during last Friday's leverage flush out. This rise in volatility highlights the growing Wall Street-like dynamics in the crypto market, where volatility tends to surge during price sell-offs. The upswing in BTC's volatility is also marked by short and near-dated puts trading at a premium to calls, reflecting heightened fears of a protracted market downturn.