What is the correlation between VIX ticker and cryptocurrency prices?

1 answers

• Feb 18, 2022 · 3 years ago
  At BYDFi, we have observed some correlation between the VIX ticker and cryptocurrency prices. When the VIX is high, indicating increased market volatility, we have noticed a decrease in cryptocurrency prices. This can be attributed to investors seeking safer assets during uncertain times. However, it's important to note that the correlation is not always consistent and can vary depending on other market factors. Cryptocurrency prices are influenced by a wide range of factors, including market demand, technological advancements, regulatory developments, and investor sentiment. Therefore, while the VIX can provide some insights into market volatility, it should not be the sole indicator for predicting cryptocurrency prices. It's crucial to conduct comprehensive research and analysis to make informed investment decisions in the cryptocurrency market.
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