Are there any correlations between VIX option settlement and cryptocurrency volatility?

1 answers

• May 02, 2022 · 3 years ago
  Yes, there can be correlations between the settlement of VIX options and the volatility of cryptocurrencies. At BYDFi, we have observed that when VIX options settle at a high level, there is often an increase in cryptocurrency volatility. This can be attributed to the fact that VIX options are used by institutional investors as a hedge against market volatility, and their settlement can impact overall market sentiment. When VIX options settle at a high level, it can lead to increased risk aversion among investors, which can result in a decrease in cryptocurrency prices. However, it's important to note that correlation does not imply causation, and other factors such as market news and regulatory developments can also influence cryptocurrency volatility.
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