Bitcoin Price Analysis: Bitcoin is a Yardstick for Measuring Fear in the Investment Market 

swiss government crypto efranc study

According to Equity Armor Investment’s Brian Stutland, Bitcoin serves as the fear gauge in the market. This is because as the price of Bitcoin changes, the price of other cryptocurrencies change too and Bitcoin gives investors an advantage.

In his words:

“There is a direct relationship between VIX and Bitcoin.”

Cryptocurrencies allow investors to reduce the credit risks attached to moving their money off balance sheets. Stutland believes that Bitcoin may be responsible for the next movement of the market.

During Fast Money on Tuesday, Stutland said:

“Bitcoin is becoming the new VIX. It is sort of getting ahead of the risk attached to credits in the banking industry.”

VIX is an acronym for CBOE volatility index. It is the measure used to calculate fear and volatility in the marketplace and S&P 500 stock price options illustrate it. The VIX is, sometimes referred to as the fear gauge of the market. However, Stutland says that Bitcoin is the new fear indicator.

SEE ALSO:   Bitcoin (BTC) Price Analysis: The Bears Seem to Have Gained Momentum Leaving Bitcoin (BTC) Investors Discouraged (Bitcoin News Today, June 22)

According to him, cryptocurrencies are becoming a medium for asserting credit risks in the banking industry. This makes sense since investors use cryptocurrencies as an unregulated way to transfer capital.

He continued:

“Bitcoin gives investors an opportunity to transfer their money from balance sheets in banks right into their cryptocurrency wallets. This allows them to store money by their bedsides in the form of virtual currency. It makes investors more cautious with their money when financial institutions have high credit risks. As the credit risk increases, the market volatility also increases.”

SEE ALSO:   Bitcoin Price Today USD - Latest Price Chart Analysis and Bitcoin Price Prediction 2020 - Bitcoin Price News Today -Sat Jun 23

On Tuesday, the VIX got as high as 18.39 which was a come back from the 12.59 low on Friday. On Tuesday was turbulent for the market as the three major indexes closed lower. The Dow Jones fell by 500 points.

Around 6:30 p.m ET, On Tuesday, Bitcoin sold at $7,500. This was a dip compared to May 5th when it traded close to $10,000.




Legal Disclaimer: The content of this website ( is intended to convey general information only. This website does not provide legal, investment, tax, etc advice. You should not treat any information on as a call to make any particular decision regarding cryptocurrency usage, legal matters, investments, taxes, cryptocurrency mining, exchange usage, wallet usage, initial coin offerings (ICO), etc. We strongly suggest seeking advice from your own financial, investment, tax, or legal adviser. Neither nor its parent companies accept responsibility for any loss, damage, or inconvenience caused as a result of reliance on information published on, or linked to, from

SEE ALSO:   NEM (XEM) Price Prediction 2018: Is NEM (XEM) a Good Investment Even With the High Volatility of the Cryptocurrency Market? (NEM News Today)

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Get Smart About Crypto!

Promise we won’t spam you!

We Are Hiring

Click here if you would like to join one of the fastest growing blockchain news companies in the world!