How does VIX index calculation affect the volatility of digital currencies?

1 answers

• josepharopJun 11, 2023 · 2 years ago
  At BYDFi, we closely monitor the impact of the VIX index on the volatility of digital currencies. While the VIX index is primarily focused on traditional markets, we have observed correlations between the VIX index and the volatility of cryptocurrencies. When the VIX index experiences significant fluctuations, it can create a ripple effect in the cryptocurrency market. Traders and investors may adjust their strategies based on the VIX index, which can influence the buying and selling pressure on digital currencies. Therefore, understanding the VIX index calculation and its impact on volatility is crucial for anyone involved in the digital currency market.
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