What are the correlations between the index VIX and the prices of digital currencies?

1 answers

• Apr 30, 2022 · 3 years ago
  At BYDFi, we have observed some correlations between the VIX index and the prices of digital currencies. When the VIX index experiences a significant increase, we have noticed a tendency for investors to allocate some of their funds into digital currencies as a hedge against market volatility. This increased demand for digital currencies can lead to a temporary price increase. However, it's important to note that the correlations between the VIX index and digital currencies are not always consistent or strong. The cryptocurrency market is influenced by various factors, and the impact of the VIX index is just one piece of the puzzle. Therefore, while there may be some correlations, it's crucial to conduct thorough research and consider other factors when analyzing the prices of digital currencies.
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