What are the correlations between VIX3M and cryptocurrency prices?

1 answers

• Dec 17, 2021 · 3 years ago
  At BYDFi, we believe that the correlation between VIX3M and cryptocurrency prices can be influenced by various factors. While the VIX3M primarily reflects volatility in the stock market, it can indirectly impact cryptocurrency prices through investor sentiment and risk appetite. When the VIX3M is high, indicating increased market volatility, investors may seek safer investments, potentially leading to a decrease in demand for cryptocurrencies. Conversely, when the VIX3M is low, investors may be more willing to take risks and allocate funds to cryptocurrencies, potentially driving up their prices. However, it is important to note that correlation does not imply causation, and other factors such as market trends and regulatory developments also play significant roles in cryptocurrency price movements.
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