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Price changes in bitcoin and other cryptocurrencies are a better indicator of volatility in the market — as good as the VIX, says Brian Stutland of Equity Armor Investments.
"Bitcoin is sort of becoming the new VIX, in sort of getting ahead of credit risk in the banking industry," Stutland said on "Fast Money" on Tuesday.
"There is huge correlation right now between VIX and bitcoin 30 days ago, 30 trading days ago, that is starting to measure out credit risk in the market. That's what cryptocurrency is becoming. It's becoming a way to sort of de-risk yourself from credit risk in the banking industry."
He added: “Bitcoin is a way to for investors to basically move their money off the balance sheets of banks and into their own wallets," he said. "Essentially storing their money under their pillow in the form of virtual currency."
WATCH BELOW
Is bitcoin the new fear gauge for the market? from CNBC.
- Aaron Goldstein, Gambling911.com
