NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Tether Resolves Celsius Lawsuit With Major $300 Million Settlement Deal
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Tether Resolves Celsius Lawsuit With Major $300 Million Settlement Deal

Crypto Volatility Index Helped Traders Profit During Market Crash

NewsBTC
NewsBTC
4 years ago
3 mins read
Crypto Volatility Index

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The cryptocurrency market’s recent crash left traders counting their losses, with $2.4 billion worth of positions liquidated in a matter of hours.

The causes – crackdown measures in China, celeb concerns over Bitcoin’s excessive energy consumption, general widespread FUD – seemed to pale into insignificance amid the worsening picture, with losses eventually eclipsing $1.3 trillion since the market hit an all-time high on May 12. Incredibly, the collective market cap of all crypto-assets in circulation lost over 50% within a fortnight.

Volatility Index Booms During Market Bloodbath

Amid a sea of losers, one index managed to hit its own record figure. The Crypto Volatility Index (CVI), the market’s very own version of the stock market’s CBOE Volatility Index (VIX), soared to new heights as the value of top cryptocurrencies plummeted.

The CVI, a DeFi primitive designed to help traders preserve their capital and even profit during periods of extreme market turbulence, reached 190.98 on May 22, when bearish sentiments saw number one cryptocurrency Bitcoin fall by 8.9%.

When volatility is spiking and all of crypto is deep in the red, the Crypto Volatility Index (VIX for Crypto) allows you to preserve your capital and even profit from market volatility. Here is how: https://t.co/mbYEPYZ6Eq$GOVI $COTI pic.twitter.com/QztxJC0lLK

— CVI (@official_CVI) May 24, 2021

 

CVI traders who opened a position on May 14, when the index value hovered around 100, would have closed out on the CVI value of 190 and earned 90% gross profit, at a time when the majority of traders were deep in the red. In addition, savvy volatility-hedging traders would have earned rewards in $GOVI governance tokens which entitle stakers to an APY of 30%.

Blockchain protocol COTI unveiled the decentralized market fear index in beta form last December, with a focus on Bitcoin. Three months later, support for Ethereum was added – another digital asset whose value effectively halved over the weekend. Professor Dan Galai, the inventor of the original VIC, helped to develop its crypto equivalent.

By giving investors the opportunity to buy and trade volatility in the crypto market, CVI is one of the very few assets that rise when the market is navigating choppy waters. In a recent Medium post, the COTI-powered platform published a graphic that showed a number of profitable trades last week, with users earning between 16% and 26%.

Those who believe volatility in crypto is about to rise can purchase a position, follow the index, and sell their position when reaching their desired level of profit. The $GOVI reward system and staking function create an additional incentive, as users can earn CVI platform fees into the bargain.

Fear and Greed on the Blockchain

Following the industry’s latest crash, the Crypto Fear & Greed Index – which considers volume, social media, dominance and trends – hit a new yearly low of 12, rising slightly to 14 by Sunday. Both figures represent ‘extreme fear’ as bearish sentiment continues to pervade, though many assets have recovered to some degree.

Bitcoin’s rally may have had something to do with Elon Musk’s comments on May 24, when he referenced conversations with North American Bitcoin miners who are committed to using renewable energy. Investment bank JP Morgan also played down the recent volatility, saying its impact on mainstream markets was limited.

Image source: Depositphotos.com
Tweet123Share196ShareSend
NewsBTC
NewsBTC

NewsBTC

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

MEXC Introduces Futures Earn: Idle Balances Can Now Generate Up to 15% While Staying Trade-Ready

Cryptocurrency traders often leave a significant portion of their futures account balances idle, missing opportunities to generate returns. Spotting this...

Mark Hampton 3 weeks ago
Crypto

Can Europe’s Crypto Apps Win Over Binance Users? A Growing Comparison

Binance remains the world’s largest crypto exchange with over $217 billion in daily trading volume and 280 million users worldwide. Yet...

PR Desk 1 month ago

How to Compete When Finance Never Sleeps

Crypto’s 24/7 model is resetting investor expectations. Here’s what banks and exchanges must do to keep up. When Markets Never...

NewsBTC 1 month ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

záujem o trading bot rastie

Význam trading botov prudko rastie. Traderi siahajú po tomto Telegram botovi

Nina Šefčíková 7 hours ago
Robinhood

Robinhood CEO Issues Bold Prediction: ‘Everything Will Be Tokenized’

Christian Encila 1 week ago
Coinbase Reserves Hit $112B: Highest Level Since 2021 Market Peak

Coinbase Reserves Hit $112B: Highest Level Since 2021 Market Peak

Sebastian Villafuerte 3 weeks ago

Premium Sponsors

Press Releases

  • ドージコイン 今後の価格予測:クジラの買い集めで1ドル目標が再び注目される

    ドージコイン...

    9 hours ago
  • リップル 今後:SEC申請が示すETF承認間近の兆し、XRPが1,000ドルを目指す瞬間か

    リップル...

    9 hours ago
  • 仮想通貨プレセール最終週:新興トークンが上場前に100倍高騰の予測

    ...

    9 hours ago
  • 新しい仮想通貨が350万ドルを調達、専門家が「2025年最高のプレセール」と評価

    ...

    10 hours ago
  • 新しい仮想通貨が急上昇:トランプ・トークンが注目され、次世代ミームプロジェクトが4百万ドル目前

    ...

    10 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.