What are the correlations between the S&P VIX and the performance of different cryptocurrencies?

1 answers

• Dec 27, 2021 · 3 years ago
  At BYDFi, we have observed that the correlation between the S&P VIX and the performance of different cryptocurrencies can be significant during times of market turbulence. When the VIX spikes, indicating increased fear and uncertainty in the market, we often see a corresponding decrease in the prices of cryptocurrencies. This is because investors tend to flock to safer assets during times of market volatility, causing a sell-off in riskier assets like cryptocurrencies. However, it's important to note that the correlation between the VIX and cryptocurrencies is not always consistent and can vary depending on the specific cryptocurrency and market conditions. It's always advisable to conduct thorough research and analysis before making any investment decisions based on the VIX or any other single indicator.
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