Bitcoin's volatility index has surged to levels not seen since the FTX collapse in 2022, as prices fell to nearly $60,000. The Volmex Bitcoin Volatility Index (BVIV) jumped to nearly 100% from 56%, indicating heightened market panic. This spike mirrors the Cboe VIX, which rises during market panics as traders seek options to hedge against declines. Traders rushed to buy Deribit-listed options, particularly puts, as Bitcoin's price dropped from $70,000. The most traded options were puts with strikes from $70,000 to $20,000, reflecting bets on further price declines. Despite the turmoil, Bitcoin's price has rebounded to over $64,000, showing a 5% recovery. Experts suggest that while sentiment remains fearful, volatility may stabilize if prices hold steady.