How does VIX expiration impact the volatility of digital currencies?

1 answers

• Jan 14, 2022 · 3 years ago
  At BYDFi, we closely monitor the impact of VIX expiration on the volatility of digital currencies. While the VIX primarily measures volatility in the stock market, its expiration can still have spillover effects on other asset classes, including digital currencies. We have observed that the expiration of VIX tends to coincide with periods of increased volatility in the digital currency market. This can be attributed to the interconnectedness of financial markets and the psychological impact of market sentiment. However, it's important to note that the VIX is just one of many factors that can influence the volatility of digital currencies, and other factors such as regulatory developments, macroeconomic indicators, and investor sentiment also play significant roles.
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