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What is the implied volatility of Bitcoin compared to the S&P 500?

avatarKen W.Dec 19, 2021 · 3 years ago1 answers

Can you explain the concept of implied volatility and how it relates to Bitcoin and the S&P 500? How does the implied volatility of Bitcoin compare to that of the S&P 500?

What is the implied volatility of Bitcoin compared to the S&P 500?

1 answers

  • avatarDec 19, 2021 · 3 years ago
    As an expert in the field, I can tell you that the implied volatility of Bitcoin is typically higher than that of the S&P 500. This is because Bitcoin is a relatively new and highly speculative asset, while the S&P 500 consists of established companies with more stable earnings. The higher implied volatility of Bitcoin reflects the market's perception of greater uncertainty and risk associated with the cryptocurrency. However, it's worth noting that implied volatility can vary over time and is influenced by various factors such as market conditions and investor sentiment. So, while Bitcoin may currently have higher implied volatility, it's important to consider the long-term potential and risks of both assets before making any investment decisions.