What factors contribute to the increase in VIX in the cryptocurrency market?

1 answers

• Dec 29, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, believes that the increase in VIX in the cryptocurrency market is primarily driven by market sentiment and investor behavior. When there is a high level of uncertainty or fear in the market, investors tend to sell off their holdings, leading to increased selling pressure and higher volatility. Additionally, regulatory actions and government interventions can also impact the VIX. News of potential regulations or bans on cryptocurrencies can create panic and drive up volatility. It is important for investors to stay informed about market developments and be prepared for increased volatility in the cryptocurrency market.
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