How does VIX affect the volatility of digital currencies?

1 answers

• Dec 20, 2021 · 3 years ago
  At BYDFi, we believe that the VIX can have a significant impact on the volatility of digital currencies. The VIX is often used as a gauge of market fear and can influence investor behavior. When the VIX is high, it indicates a higher level of fear and uncertainty, which can lead to increased selling pressure on digital currencies and result in higher volatility. Conversely, when the VIX is low, it suggests a more stable market environment, which can attract investors to digital currencies and potentially reduce their volatility. Therefore, monitoring the VIX can be a useful tool for understanding and predicting the volatility of digital currencies.
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