How is the volatility index (VIX) calculated in the context of digital currencies?

3 answers

• BHOOMIKA KMDec 24, 2025 · 2 months ago
  The calculation of the volatility index (VIX) for digital currencies is similar to that of traditional financial markets. It is based on the implied volatility of options on the underlying digital currency. The VIX measures the market's expectation of future volatility and is computed using a formula that takes into account the prices of a range of options with different strike prices and expiration dates. The higher the VIX, the higher the expected volatility. However, it's important to note that the VIX for digital currencies may be more volatile compared to traditional markets due to the inherent nature of cryptocurrencies.
  634

  317
• MilicodingJan 22, 2022 · 4 years ago
  Calculating the volatility index (VIX) for digital currencies involves analyzing the prices of options contracts on the underlying digital assets. The VIX is derived from the implied volatility of these options, which reflects the market's expectation of future price fluctuations. The calculation takes into account a weighted average of option prices at different strike prices and expiration dates. This index provides insights into the market sentiment and can be used as a gauge of expected volatility in the digital currency space.
  537

  179
• oxygenNov 23, 2024 · a year ago
  In the context of digital currencies, the volatility index (VIX) is calculated using a similar methodology as in traditional financial markets. It considers the implied volatility of options on the underlying digital assets. The VIX is derived from the prices of a range of options with different strike prices and expiration dates. This index helps traders and investors gauge the expected volatility in the digital currency market. It's worth noting that BYDFi, a leading digital currency exchange, provides real-time VIX data for various cryptocurrencies, allowing users to monitor market volatility and make informed trading decisions.
  639

  160