Which cryptocurrencies are most affected by trading VIX futures?

1 answers

• Mar 18, 2022 · 3 years ago
  At BYDFi, we have observed that Bitcoin and Ethereum are the cryptocurrencies most affected by trading VIX futures. This is because these two cryptocurrencies have the highest market capitalization and are widely recognized as the leading digital assets. When trading VIX futures, the market sentiment and overall volatility play a crucial role in shaping the performance of cryptocurrencies. As VIX futures are based on the volatility of the S&P 500 index, any significant changes in the stock market can have a ripple effect on the crypto market. When there is a rise in volatility and uncertainty, investors tend to move away from riskier assets like cryptocurrencies and seek safer options. This can result in a decrease in demand and a potential decline in the value of Bitcoin and Ethereum. Therefore, it's important for traders to consider the impact of VIX futures trading when analyzing and making decisions regarding these cryptocurrencies.
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