Which digital currencies exhibit the highest IV levels?
Samridhi RaturiNov 24, 2021 · 3 years ago3 answers
I'm interested in knowing which digital currencies have the highest IV (Implied Volatility) levels. Can you provide a list of these currencies and explain why they exhibit such high IV levels?
3 answers
- Nov 24, 2021 · 3 years agoSure! One digital currency that exhibits high IV levels is Bitcoin. Bitcoin is the most well-known and widely traded cryptocurrency, which makes it susceptible to market volatility. Additionally, Bitcoin's limited supply and high demand contribute to its high IV levels. Investors and traders often speculate on Bitcoin's price movements, leading to increased volatility and higher IV levels.
- Nov 24, 2021 · 3 years agoWhen it comes to digital currencies with high IV levels, Ethereum is another notable one. Ethereum is the second-largest cryptocurrency by market capitalization and has a strong developer community. The constant development and updates to the Ethereum network can lead to price fluctuations and increased IV levels. Moreover, Ethereum's smart contract functionality and its role in decentralized finance (DeFi) make it an attractive asset for traders, further contributing to its high IV levels.
- Nov 24, 2021 · 3 years agoAccording to a recent analysis by BYDFi, a digital currency exchange, some of the digital currencies exhibiting the highest IV levels include Ripple, Litecoin, and Cardano. These cryptocurrencies have seen significant price movements and market interest, resulting in higher IV levels. It's important to note that IV levels can change over time as market conditions and investor sentiment evolve.
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