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Are there any correlations between 2 year note futures and the volatility of digital currencies?

avatarSpencer ApeadjeiNov 26, 2021 · 3 years ago3 answers

Is there a relationship between the trading of 2 year note futures and the volatility of digital currencies? Can the performance of 2 year note futures be used as an indicator for predicting the volatility of digital currencies?

Are there any correlations between 2 year note futures and the volatility of digital currencies?

3 answers

  • avatarNov 26, 2021 · 3 years ago
    Yes, there can be correlations between the trading of 2 year note futures and the volatility of digital currencies. As 2 year note futures are considered a safe haven investment, when there is increased uncertainty in the market, investors tend to flock to these futures, which can lead to increased volatility in digital currencies. However, it's important to note that correlation does not imply causation, and other factors such as market sentiment and regulatory changes can also impact the volatility of digital currencies.
  • avatarNov 26, 2021 · 3 years ago
    Absolutely! The trading of 2 year note futures and the volatility of digital currencies can be closely related. When there is a significant change in the interest rates of 2 year notes, it can have a ripple effect on the overall market sentiment, which in turn can impact the volatility of digital currencies. Traders and investors often keep an eye on the performance of 2 year note futures as a potential indicator for predicting the volatility of digital currencies.
  • avatarNov 26, 2021 · 3 years ago
    According to a study conducted by BYDFi, there is indeed a correlation between the trading of 2 year note futures and the volatility of digital currencies. The study analyzed historical data and found that when there were significant movements in the 2 year note futures market, it often coincided with increased volatility in digital currencies. This suggests that monitoring the performance of 2 year note futures can provide valuable insights for predicting the volatility of digital currencies.