VIX vs BTC - Inverse Correlation for price prediction

3 de fev. de 2023

BTC vs VIX and SPX vs VIX the inverse correlation of VIX to SPX is no secret, and applying VIX onto a BTC chart shows how much BTC is more and more correlated to the SnP, this is a good tool to have in any traders arsenal. The beauty of VIX is that it is based on expiring index options, which makes it relatively accurate in estimating volatility. I think SPX and BTC correlation will increase especially this year as the markets will become more and more liquidity strapped.

For extra info

a- The Cboe Volatility Index, or VIX, is a real-time market index representing the market’s expectations for volatility over the coming 30 days.
b- Investors use the VIX to measure the level of risk, fear, or stress in the market when making investment decisions.
c- Traders can also trade the VIX using a variety of options and exchange-traded products, or they can use VIX values to price derivatives.
d- The VIX generally rises when stocks fall, and declines when stocks rise.
Source: investopedia.com/terms/v/vix.asp