#BTC VIX's Second-Largest Spike in History Indicates a Local Bottom for Bitcoin: Van Straten. The VIX jumped 74% yesterday after a 25bps rate cut and a hawkish outlook from Fed Chair Jerome Powell.

What to know:

Markets reacted negatively to the Fed's 25 basis point cut and hawkish outlook, causing bitcoin to tumble below $100,000 and U.S. equities to drop by 3%.

The CBOE Volatility Index (VIX) jumped 74% on Wednesday, marking the biggest one-day jump since Feb. 5, 2018.

Historical data suggests that significant spikes in the VIX are often followed by strong performance of bitcoin and the S&P 500. Wednesday, Dec. 18, will go down in history as a day of market panic triggered by the 25 basis point Fed rate cut and Chair Jerome Powell's hawkish outlook.

Bitcoin (BTC) briefly tumbled below $100,000; U.S. equities dropped around 3%, while the dollar index (DXY) index soared to a two-year high of 108, which continues to put pressure on currencies worldwide.