The recent crash of the cryptocurrency market left traders to count their losses, with the $ 2.4 billion price situation ending in just a few hours.
The reason for – Action measures in china, The celeb’s concern over bitcoin’s excessive energy consumption, seemed insignificant amid the usual widespread FUD – deteriorating picture, with losses eventually eclipsing $ 1.3 trillion as the market reached an all-time high on 12 May. Incredibly, crypto-assets lost over 50% within a fortnight in the collective market capitalization circulation of all.
Volatility index rises during the bloodshed in the market
Amid a sea of losses, an index managed to hit its own record figure. Crypto volatility index (CVI) is the market’s own version of the stock market’s CBOE Volatility Index (VIX), which has reached new heights with the decline in the value of top cryptocurrencies.
CVI, a DFI primitive designed to help traders maintain their capital and even profit during a period of extreme market turmoil, reached 190.98 on 22 May , When the number one cryptocurrency bitcoin saw an 8.9% drop in bearish sentiments.
When volatility is increasing and all cryptos are deep in red, the crypto volatility index (VIX for crypto) allows you to preserve profits from your capital and even market volatility. Here’s how: https://t.co/mbYEPYZ6Eq$ GOVI $ COTI pic.twitter.com/QztxJC0lLK
– CVI (@official_CVI) May 24, 2021
CVI traders opened a position on May 14, when the index price was around 100, closing at a 190 CVI value and earning 90% gross profit, at a time when most traders were deep in the red. In addition, savvy volatility-hedging traders may have earned rewards in the $ GOVI governance token that entitle the stackers to 30% APY.
Blockchain Protocol COTI Unveiled The decentralized market fears index in beta form last December with a focus on bitcoin. Three months later, support was added for Ethereum – another digital asset whose value was effectively halved over the weekend. The inventor of the original VIC, Professor Dan Gallai, helped develop its crypto counterpart.
By giving investors the opportunity to buy and trade volatility in the crypto market, CVI is one of the very few assets that is growing in the fluctuating waters of the market. In a recent medium Post, A platform powered by COTI, published a graphic showing a number of profitable trades last week, with users earning between 16% and 26%.
Those who believe that instability in crypto is going to increase can buy a position, follow the index, and sell their position when they reach their desired level of profit. The $ GOVI reward system and stacking function create an additional incentive, as users can earn CVI platform fees in the bargain.
Fear and greed on the blockchain
After the industry’s latest crash, Crypto Fear and Greed Index – which considers volume, social media, dominance and trends – reached a new annual low of 12, rising slightly to 14 by Sunday. Both figures represent ‘extreme fear’ as the sentiment of recession pervades, although many assets have recovered to some extent.
Bitcoin rally may have something to do with Elon Musk notes On May 24, when he referenced conversations with North American bitcoin miners, who are committed to using renewable energy. Investment bank JP Morgan also mitigated recent volatility, saying effect Was limited on mainstream markets.
Image source: Depositphotos.com