How does VIX affect the value of digital currencies?

1 answers

• May 07, 2022 · 3 years ago
  At BYDFi, we closely monitor the relationship between the VIX and digital currencies. While there is no direct causal link between the two, we have observed that during periods of high VIX, there is often increased volatility in the cryptocurrency market. This can lead to sharper price movements and larger swings in digital currency values. However, it's important to note that the VIX is just one of many factors that can impact digital currency prices. Other factors such as market demand, regulatory developments, and technological advancements also play significant roles. Therefore, it's crucial for investors to consider a wide range of factors when evaluating the value of digital currencies.
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