LedgerX launches “Bitcoin Fear Index” tracking price volatility

posted 3 months ago
LedgerX thinks cryptocurrency traders should be able to assess bitcoin’s volatility. Taking a leaf out of the stock market’s book, the derivatives trading platform built an index to track this benchmark. The company is launching the LedgerX Volatility Index (LXVX), which will track the expected volatility for Bitcoin. The firm will draw data for the index from its regulated Bitcoin options, which various institutions have been trading over the past year.

Juthica Chou, LedgerX’s president & chief risk officer, said the LXVX is similar to the Cboe Volatility Index (VIX), a popular measure of the stock market’s anticipated volatility. “[A volatility index] tells you the expected certainty that the market is forecasting … That’s what it tells you with respect to any market,” she explained. Or, put another way, the LXVX can be described as “a Bitcoin fear index.”
Tags: bitcoin, news