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What Is the Relationship between the VIX and the Stock Market (Or Crypto Market) Price?

The VIX typically has a strong negative correlation with the underlying market price. When the stock or crypto market experiences a sharp decline, the VIX usually spikes upward, reflecting increased investor fear and uncertainty.

Conversely, during periods of market stability or steady growth, the VIX tends to be low.

What Is the Significance of the VIX Index in Financial Derivatives?
How Can Traders Use the VIX Index as a Reference for Crypto Volatility?
How Does the VIX Index Relate to Crypto Implied Volatility?
How Does the “Fear and Greed Index” Reflect a Flight to Quality Event?