LedgerX Launches ‘Bitcoin Fear Index’ to monitor Bitcoin price

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The CFTC-regulated crypto asset management platform LedgerX has built an index that tracks Bitcoin’s price volatility. The LedgerX Volatility Index (LXVX) will provide cryptocurrency traders with insights into Bitcoin’s expected volatility, and is alternatively known as a “Bitcoin fear index.”

The firm will draw data for the index from its regulated bitcoin options, which various institutions have been trading over the past year.

“A volatility index for bitcoin was part of the original business plan going back as long as five years ago. Once we got a market we were comfortable with we decided to launch,” said LedgerX CEO, Paul Chou.

Chou said that the volatility index would indicate the price movements in the next month. This would show traders the money they can gain or lose over the coming months.

Read More: https://bitzamp.com/ledgerx-launches-bitcoin-fear-index-to-monitor-bitcoin-price/

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“A volatility index for bitcoin was part of the original business plan going back as long as five years ago. Once we got a market we were comfortable with we decided to launch,” said LedgerX CEO, Paul Chou.

This is a very nice index, because we can see, if there is more down or not. Of course the index can change, but it's trend shows us if whales are coming in. If prices are still dropping, and this index is smaller then the fear is smaller, and there is little chance to see prices much lower than the current. If prices are rising and the index shows greater fear, then the bull is near it's end. Interesting index to follow.