New Bitcoin volatility index BVIN revolutionizes cryptocurrency investment strategies.
A new bitcoin volatility index called BVIN has been introduced by Carol Alexander and Arben Imeraj from the University of Sussex. They studied bitcoin variance risk premiums and created indexes for different time periods using data from the Deribit exchange. The methodology used is similar to the VIX index for stocks. The researchers found that bitcoin variance has potential for diversification and compared it with other assets' volatility indexes.