Analysts: As the VIX reaches its highest level since the COVID-19 market panic, the cryptocurrency market may face greater volatility.

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MarsBit
08-05
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According to Mars Finance, Bohan Jiang, head of over-the-counter options trading at Abra, said that the recent macroeconomic downturn caught the derivatives market off guard, and the Chicago Board Options Exchange's Volatility Index (VIX) soared. In the past 24 hours, VIX has soared to more than 65 points, the highest level since the market panic at the beginning of the COVID-19 outbreak. Bohan Jiang said: "I expect the implied volatility of the cryptocurrency market to remain high until macro factors calm down. Most options market participants are not prepared for the recent macroeconomic recession. As the macro narrative shifts, the cryptocurrency market still tends to trend upward; there is almost no hedging against downside risks."

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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