How do VIX funds affect the volatility of digital currencies?

1 answers

• Dec 20, 2021 · 3 years ago
  VIX funds can affect the volatility of digital currencies due to their correlation with market sentiment. When investors anticipate higher volatility, they may sell off digital currencies, leading to price decreases. Conversely, when the VIX is low, indicating lower expected volatility, investors may be more willing to hold digital currencies, resulting in increased prices. However, it's crucial to remember that the relationship between VIX funds and digital currencies is not a direct one. Various other factors, such as economic news and regulatory developments, also impact digital currency volatility.
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