How does the VXX impact the value of digital currencies?

1 answers

• Kevenn Styvenn Brito SantanaNov 06, 2021 · 4 years ago
  The VXX, also known as the Volatility Index, has an impact on the value of digital currencies. When the VXX rises, it indicates that market volatility is increasing, which can make investors more cautious and risk-averse. This can lead to a decrease in demand for digital currencies, causing their value to drop. Conversely, when the VXX falls, it suggests that market volatility is decreasing, which can boost investor confidence and attract more capital into digital currencies, potentially driving their value up. In summary, the VXX serves as a gauge of market volatility, and fluctuations in its value can influence investor sentiment and the demand for digital currencies.
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