How Can Traders Use the VIX Index as a Reference for Crypto Volatility? ⎊ Path

How Can Traders Use the VIX Index as a Reference for Crypto Volatility?

The VIX, or Volatility Index, measures the stock market's expectation of volatility based on S&P 500 index options. While it is not directly related to crypto, traders often use it as a general gauge of market risk sentiment.

A high VIX indicates fear and uncertainty in traditional markets, which can spill over into the crypto market, often leading to higher crypto volatility. Some crypto-native indices, like the BitVol Index (Bitcoin Volatility Index), have been developed to serve a similar purpose specifically for the crypto market, providing a more direct measure.

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Glossar

Vix Index

Index ⎊ The Vix Index, or 'fear gauge,' traditionally measures implied volatility of S&P 500 options, reflecting market expectations of near-term price swings.

VIX

Index ⎊ The VIX, or Cboe Volatility Index, is a real-time market index representing the market's expectation of future volatility over the next 30 days.