Crypto Volatility Index Helped Traders Profit During Market Crash
The cryptocurrency market’s recent crash left traders counting their losses, with $2.4 billion worth of positions liquidated in a matter of hours. The causes – crackdown measures in China, celeb concerns over Bitcoin’s excessive energy consumption, general widespread FUD – seemed to pale into insignificance amid the worsening picture, with losses eventually eclipsing $1.3 trillion […]
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COTI’s new Crypto Volatility Index allows traders to profit from highly-volatile cryptocurrency markets. COTI, a blockchain-powered fintech startup, has launched a new cryptocurrency index enabling traders to profit from the market volatility.The new Crypto Volatility Index, or CVI, brings the traditional “market fear index” to the crypto market, allowing users to deposit and open positions with Tether (UDST).Gibraltar-based COTI explained that the new index allows traders to open CVI positions for high and low volatility. “Users who expect volatility to increase can open a CVI position.....
Bitcoin derivatives exchange BitMEX has announced that from 5th January they will publish a 30 day bitcoin volatility index, measuring the cryptocurrency's volatility against the United States dollar, and that they will create a tradable financial instrument based on the index. Often known colloquially as a 'fear index', a volatility index provides a measure of how much the value of a currency or asset is fluctuating up and down during a given period of time. A similar index called the VIX is often used by stock market traders to gauge and hedge against risk, as well as for other trading....
Option traders seem to be quite fearful in October. The Crypto Volatility Index, or CVX, is now live as a beta test and proof of concept. The index tracks the implied volatility of crypto options in a similar fashion to the VIX index used in stock markets.The VIX is usually referred to as the “stock market fear index” as it often spikes in anticipation of major downward moves.The CVX operates under a very similar mechanism. It tracks the implied volatility of a basket of crypto options, primarily for Bitcoin (BTC) and Ethereum (ETH).Options are a derivative product that give buyers the....
As Coti ramps up efforts to bring a decentralized fear index to crypto, it has enlisted the help of Professor Dan Galai, one of the pioneering brains behind the Cboe Market Volatility Index (VIX), to help the organization develop a crypto-oriented version. VIX Co-Creator to Join Coti-Backed Volatility Project Since exchanges for cryptocurrencies first arose, the market and accompanying price action have proven to be among the most volatile around. Intraday swings of double-digit percentage rates are regular occurrences. While it might seem like outsized volatility given the market’s....
Bitcoin has now seen declining prices following the El Salvador Bitcoin law. The flash crash that had cleared at least $400 billion off the crypto total market cap has left lingering effects on the price of the digital asset. The price had plunged from $50,000 to $42,000 in less than an hour, leading to an 18% loss in about 30 minutes. While bitcoin has since recovered from its lows from the crash, the asset has not been able to recover to previous levels before the crash. Though the crash had affected most of the market, mid-cap coins have recovered the most from this. The Mid Caps Index....