How does VIX USA affect the trading volume of cryptocurrencies?

1 answers

• Dec 25, 2021 · 3 years ago
  At BYDFi, we have observed that the VIX USA can have a significant impact on the trading volume of cryptocurrencies. When the VIX USA spikes, we often see an increase in trading activity on our platform. This is likely due to investors seeking to diversify their portfolios and hedge against market volatility. Cryptocurrencies, with their decentralized nature and potential for high returns, can be seen as a safe haven during times of market uncertainty. As a result, the trading volume of cryptocurrencies tends to rise when the VIX USA is elevated. However, it's important to note that the relationship between the VIX USA and cryptocurrency trading volume is not always straightforward and can be influenced by various other factors as well.
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