Are correlations causing cryptocurrencies' price volatility?
Could you elaborate on the notion that correlations might be driving the volatility in cryptocurrency prices? Are there specific market dynamics or factors that suggest a strong link between correlated assets and the price movements we've witnessed in the crypto market? Additionally, how do these correlations compare to traditional financial markets, and what impact might they have on investors' decision-making processes?
Are there indices to measure crypto price volatility?
Could you elaborate on whether there exist indices or methodologies that are widely adopted to accurately measure the price volatility in the cryptocurrency market? Given the high fluctuations often observed in crypto prices, it seems imperative to have reliable benchmarks to assess risk and make informed investment decisions. Are there any specific indices that have gained widespread acceptance in the industry, or are there still ongoing efforts to develop more comprehensive measurement tools? I'm particularly interested in understanding how such indices are calculated and what factors they typically consider in determining volatility.