According to the President of the company Equity Armor Investments Brian Stutland (Brian Stutland), CBOE volatility index (VIX), also known as the «fear index», which reflects market expectations for future volatility, follows the movements of bitcoin exchange rate with a delay of 1 month.
Statland said: «it is Obvious that the VIX index and the bitcoin correlate with the difference in about 30 days. We can say that cryptocurrencies become a way of getting rid of credit risks in the banking industry.»
It is known that the majority of cryptocurrencies are not regulated, which allows investors to withdraw their money from banks and thus eliminate the associated credit risks. Despite the high volatility of bitcoin, players in traditional markets use it as a safe asset against fluctuations in the stock markets.
«In fact, bitcoin is a way to withdraw their money from banks and «put them under the pillow» in the form of virtual currency,» — says Statland.
Special caution investors have in the moment when banks increase credit risks.
«As soon as banks raise credit risks – immediately increases the volatility of the market,» added Stotland.
The Chairman of the Commission on securities and stock exchanges of the USA Jay Clayton (Jay Clayton) recently stated that although the cryptocurrency is quite a highly volatile asset, though, she was less volatile than the VIX index.