Year 2021 Data Cements Bitcoin As Risk-On Asset

2021-12-31 22:00

Data shows that Bitcoin has increasingly behaved like a risk-on asset in the year 2021 as its price movements have reacted to the VIX volatility index.

Bitcoin Cements Itself As A Risk-On Asset During The Year 2021

As per the latest weekly report from Arcane Research, BTC has behaved like a risk-on asset this year as the crypto’s price has seemed to follow VIX.

“VIX” is the ticker symbol for the Chicago Board Options Exchange’s Volatility Index. This index tells us about the stock market’s expectations of the volatility based on S&P 500 index options.

While the official name is the CBOE volatility index, the name “VIX” has caught on as the most popular way to refer to it.

The VIX index is a real-time indicator that measures the expected volatility in the market for the coming thirty days. The index is also often referred to as the “fear gauge.”

When the value of this metric is high, it means a greater volatility in the stock market may follow in the near future. On the other hand, low values of the index would suggest a period of low volatility might be there soon.

Related Reading | Bitcoin Bearish Signal: Trend Is Again Shifting From Outflows To Inflows

Now, here is a chart that shows the apparent relationship between the price of Bitcoin and the VIX index:

Looks like BTC's price has increasingly become related to the index over the past few years | Source: The Arcane Research Weekly Update - Week 51

As you can see in the above graph, during the year 2019, which is before COVID came around, Bitcoin didn’t seem to be affected by fear in the broader market.

However, following the monetary and fiscal policies that were approved during the COVID era, institutional investors started getting interested in the coin.

In 2020, the relationship between VIX and the Bitcoin price was still unclear. But from the data of the year 2021, it’s visible that there is now a correlation between the two metrics.

Bitcoin has responded to fear in the stock market during 2021, showing that institutional investors for the most part consider the crypto to be a risk-on asset.

Related Reading | Elon Musk Explains DOGE Edge Over Bitcoin, But Where Is He Wrong?

The report notes that because of this, it could be worth keeping an eye on VIX as fear in the stock market may have implications for BTC’s price.

BTC Price

At the time of writing, Bitcoin’s price floats around $47.5k, down 2% in the last seven days. The below chart shows the trend in the price of the coin over the past five days.

BTC's price has plunged down in the last few days | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, Arcane Research

Similar to Notcoin - Blum - Airdrops In 2024

origin »

New Year Bull (NYB) на Currencies.ru

$ 0.0703336 (+0.01%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: -0.09 %
Cегодня L: $0.0703336 - H: $0.0703336
Капитализация $0 Rank 99999
Цена в час новости $ 0.0272132 (158.45%)

year asset risk-on bitcoin 2021 price vix

Источник: newsbtc.com

year asset → Результатов: 126


Фото:

2020: The Year of the Digital Asset

Standing on the doorstep of a new year and a new decade, it is hard to believe that the first real public engagement with digital assets began only a few short years ago in 2017. Over that year and into the next, speculators and media coverage drove wild fluctuations in interest and price—contributing to a … Continued The post 2020: The Year of the Digital Asset appeared first on Ripple.

2019-12-21 01:14


Криптобиржа ErisX запустила торговлю поставочными bitcoin-фьючерсами

Криптовалютная биржа ErisX запустила торговлю поставочными фьючерсными контрактами на Bitcoin, которые теперь представлены на одной платформе со спотовыми сделками.  After a busy year of infrastructure and technology development, team building, and collaboration with regulators, we are pleased to close the year out by bringing our innovative platform for digital asset spot and regulated futures trading […] Запись Криптобиржа ErisX запустила торговлю поставочными bitcoin-фьючерсами впервые появилась Bloomchain.

2019-12-19 13:56


Фото:

Analyst: Ripple Distribution Almost Complete, XRP Mark Down Could Follow

The cryptocurrency known as XRP, also called Ripple, has been among the worst performing crypto assets throughout the year of 2019. While many crypto investors are expecting the massively oversold asset that’s long been in a downtrend to finally reverse and return to former high prices, one crypto analyst believes that Ripple’s distribution is almost.

2019-12-11 21:00


38% of Asset Managers with State Street Plan to Invest in Crypto Next Year

While Bitcoin used to be an asset that investors stayed away from, many asset managers are considering adding it to their own portfolios nowadays. In a statement by the managing director of digital product development and innovation at State Street, Jay Biancamano, it looks like next year could be lucrative for the crypto market, but […]

2019-12-8 21:15


Swell 2019: How On-Demand Liquidity Is Changing the Global Payments Game

Last year at Swell, we first announced On-Demand Liquidity (ODL), which leverages the digital asset XRP as a bridge currency to eliminate the need for pre-funding in cross border payments. Since then, we have seen tremendous growth and customer interest with more than 7x the number of transactions using ODL from the end of Q1 … Continued The post Swell 2019: How On-Demand Liquidity Is Changing the Global Payments Game appeared first on Ripple.

2019-11-7 13:36


дальше еще 77 новостей →

Партнеры Currencies.ru

Аналог Notcoin - Blum - Играй и зарабатывай Монеты



Реклама на Currencies.ru

Самое свежее на Currencies.ru

Bitcoin Transactions At All-Time High, But Active Addresses Collapse: What’s Going On?

Data shows that Bitcoin active addresses have plunged, but the transaction count has been around an all-time high (ATH). Here’s why this may be so. Bitcoin Active Addresses And Transaction Count Have Diverged Recently According to the latest weekly report from Glassnode, the Bitcoin network has been showing a divergence in its activity-related metrics recently. […]

Is Bitcoin Overheated Right Now? This Metric Suggests No

Data of an on-chain indicator could suggest Bitcoin is currently not at a stage where its price would be at a significant risk of facing correction. Bitcoin 365-Day MA Growth Rate Is Sitting Below Historical Overheated Zone In a post on X, CryptoQuant author Axel Adler Jr has discussed about the recent trend in the “Growth Rate” metric for Bitcoin.

Bitcoin Whales Buy While Market Panics As $950M Worth Of BTC Leaves Exchanges

On-chain data shows Bitcoin whales may have quietly been accumulating at the recent price lows as exchanges have registered large withdrawals. Bitcoin Exchange Reserve Has Observed A Decline Recently As pointed out by analyst Ali Martinez in a post on X, exchanges have seen significant withdrawals over the last couple of days. The on-chain metric […]

Bitcoin Slips Under $67,000: Can BTC Rely On This Historical Support Again?

Bitcoin has observed a plunge during the past day, taking the asset’s price under $67,000. Here’s the historical support level that the asset could visit next. Bitcoin Is Now Not Far From The Short-Term Holder Realized Price As analyst James Van Straten pointed out in a post on X, the Realized Price of the Bitcoin Short-Term Holders has been going up recently and currently sits around the $64,000 level.

Bitcoin Whales Open Massive Longs At $69,000: All Ahead From Here?

Data shows the Bitcoin whales on cryptocurrency exchanges Bybit and HTX have opened massive long positions at the current price levels. Bitcoin Taker Buy Sell Ratio Has Spiked For Bybit and HTX Recently In a new post on X, CryptoQuant founder and CEO Ki Young Ju has revealed that the whales on the HTX platform […]

Bitcoin Demand: Investors Buying BTC At 5.5x The Rate Of Miner Production

On-chain data shows that Bitcoin investors have recently been scooping up supply equal to 5.5 times what the miners have produced. Bitcoin Investor Cohorts Have Been Busy Accumulating Recently In a post on X, analyst James Van Straten discussed the accumulation that Bitcoin investor cohorts have been participating in and how it compares with the […]