Bitcoin: Wall Street's New Worry Index?

Analysts see a correlation between Bitcoin and the volatility indicator CBOE Volatility Index (VIX). Some believe that the Bitcoin rises in the stock markets with high volatility and serves as a kind of safe haven. For others, the opposite is true: low volatility would encourage investors to invest in higher-risk, high-yielding assets such as cryptocurrencies.

The cryptocurrency Bitcoin apparently correlates increasingly with the CBOE Volatility Index (VIX), according to analyst Brian Stutland to CNBC. Known as Wall Street's "Fear Index," VIX is considered to be a sentiment barometer of stock markets. If the VIX rises, this indicates troubled markets. Bitcoin would also rise as market sentiment worsens. The reason: The digital currencies allow investors to withdraw their money from banks and reduce their credit risks.

Conclusion: Whether there really is a correlation between VIX and Bitcoin - in whichever direction - remains unclear. That investors use Bitcoin as a safe haven for troubled times in the markets seems to be at least questionable. After all, Bitcoin, with its extremely high volatility unlike gold, has not proven to be a safe store of value. Currently, the Bitcoin is almost three percent plus