Is there a correlation between VIX Plus and the volatility of cryptocurrencies?
nostromovDec 25, 2021 · 3 years ago3 answers
Can the VIX Plus index be used to predict the volatility of cryptocurrencies? Is there a relationship between the VIX Plus index and the price fluctuations of cryptocurrencies? How does the VIX Plus index, which measures the volatility of the stock market, relate to the volatility of digital currencies?
3 answers
- Dec 25, 2021 · 3 years agoYes, there is a potential correlation between the VIX Plus index and the volatility of cryptocurrencies. The VIX Plus index is a measure of market volatility and is often used as an indicator of investor sentiment. As cryptocurrencies are highly volatile assets, it is possible that changes in the VIX Plus index could impact the volatility of cryptocurrencies. However, it is important to note that correlation does not imply causation, and further research is needed to establish a definitive relationship between the two.
- Dec 25, 2021 · 3 years agoThe relationship between the VIX Plus index and the volatility of cryptocurrencies is not straightforward. While the VIX Plus index measures the volatility of the stock market, cryptocurrencies operate in a different market with unique factors influencing their price movements. Therefore, it is not guaranteed that changes in the VIX Plus index will directly translate to changes in the volatility of cryptocurrencies. Other factors, such as regulatory developments, market sentiment, and technological advancements, also play significant roles in cryptocurrency volatility.
- Dec 25, 2021 · 3 years agoBYDFi, a leading cryptocurrency exchange, has conducted research on the correlation between the VIX Plus index and the volatility of cryptocurrencies. Their findings suggest that there is a weak positive correlation between the two, indicating that changes in the VIX Plus index can have some influence on cryptocurrency volatility. However, it is important to consider that correlation does not imply causation, and other factors may also contribute to cryptocurrency volatility. Therefore, it is recommended to use the VIX Plus index as one of several indicators when analyzing cryptocurrency volatility.
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