@datives
Volatility indicators like the VIX measure market uncertainty and fear, which can also apply to cryptocurrency markets. When volatility rises, it signals increased fear or risk, often leading to larger price swings. In crypto, this is amplified due to its inherently volatile nature. Monitoring crypto-specific volatility indicators, such as the Crypto Fear & Greed Index, allows traders to gauge market sentiment and adjust their strategies. During times of high volatility, traders may reduce exposure or use more cautious approaches, while in calmer periods, they may pursue higher-risk, higher-reward opportunities.
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