Is there a correlation between VIX Plus and the volatility of cryptocurrencies?

3 answers

• Nov 26, 2021 · 3 years ago
  Yes, there is a potential correlation between the VIX Plus index and the volatility of cryptocurrencies. The VIX Plus index is a measure of market volatility and is often used as an indicator of investor sentiment. As cryptocurrencies are highly volatile assets, it is possible that changes in the VIX Plus index could impact the volatility of cryptocurrencies. However, it is important to note that correlation does not imply causation, and further research is needed to establish a definitive relationship between the two.
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• Nov 26, 2021 · 3 years ago
  The relationship between the VIX Plus index and the volatility of cryptocurrencies is not straightforward. While the VIX Plus index measures the volatility of the stock market, cryptocurrencies operate in a different market with unique factors influencing their price movements. Therefore, it is not guaranteed that changes in the VIX Plus index will directly translate to changes in the volatility of cryptocurrencies. Other factors, such as regulatory developments, market sentiment, and technological advancements, also play significant roles in cryptocurrency volatility.
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• Nov 26, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, has conducted research on the correlation between the VIX Plus index and the volatility of cryptocurrencies. Their findings suggest that there is a weak positive correlation between the two, indicating that changes in the VIX Plus index can have some influence on cryptocurrency volatility. However, it is important to consider that correlation does not imply causation, and other factors may also contribute to cryptocurrency volatility. Therefore, it is recommended to use the VIX Plus index as one of several indicators when analyzing cryptocurrency volatility.
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