Whether It Is Reasonable to Assess Volatility Index in Technology and Broader Market Using the BVIN Methodology

With the global economic downturn, investors need to make increasingly cautious investment decisions, making volatility analysis of financial products more critical. However, relying on a single data source or index often fails to provide comprehensive market insights, thereby affecting the rationality of decision-making. The Bitcoin Volatility Index (BVIN) has been proven to effectively reflect the volatility of the Bitcoin market. This study adopts the BVIN algorithm to calculate the volatility of a single stock (using Apple Inc. as an example) and the VIX index and evaluates the effectiveness of these indices in reflecting market performance. The results show that the BVIN algorithm cannot only be applied to the Bitcoin market but can also be extended to stocks and broader financial products, providing investors with a new tool for market performance evaluation.