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How does the VIX index affect the price volatility of cryptocurrencies?

avatarRajnikant varmaDec 26, 2021 · 3 years ago1 answers

Can you explain the relationship between the VIX index and the price volatility of cryptocurrencies? How does the VIX index impact the fluctuations in the cryptocurrency market?

How does the VIX index affect the price volatility of cryptocurrencies?

1 answers

  • avatarDec 26, 2021 · 3 years ago
    At BYDFi, we closely monitor the relationship between the VIX index and the price volatility of cryptocurrencies. While there is no direct correlation between the two, we have observed that during periods of high VIX index, there tends to be increased price volatility in the cryptocurrency market. This can be attributed to investors seeking alternative investments during times of market uncertainty. However, it's important to note that the VIX index is just one of many factors that can influence the price volatility of cryptocurrencies, and it should not be the sole basis for making investment decisions.