A client note released by Deutsche Bank on Friday 19th January suggests that there is a correlation between the CBOE Volatility Index (VIX) and the price of BTC. Deutsche Bank global financial strategists Masao Muraki, Tao Xu, and Hiroshi Torii coauthored the note.

In the note, they comment on the lack of volatility in the stock market, which they believe is making investors seek alternative ways of making money. The dramatic increase in bitcoin and other cryptocurrencies means that the correlation between VIC and BTC is getting stronger by the day. Institutional investors, who should be valuing assets using expert financial insight and analysis, are instead seeking feedback about the cryptocurrency market using current BTC prices.

The main point that the note makes is that if the volatility of the stock market continues to decrease, the price point of BTC and other cryptocurrencies should continue to increase, as investors are drawn into the crypto market.

While the price and market performance of traditional assets such as gold are currently stable and predictable, the cryptocurrency market is still displaying intense volatility, with the price of bitcoin falling from over $20,000 a coin in December 2017 to below $10,000 less than a month later.