Analysis of the relationship between the Fear Index (VIX), traditional commodities, and digital financial assets

Uncertainty and risk perception are fundamental factors that directly shape investors' decisions and market orientations. The purpose of this study is to examine the effects of the VIX Index, which represents such perceptions, on traditional commodities such as gold and oil, as well as on digital financial assets including Bitcoin, Ethereum, and Litecoin. Weekly data covering the period from January 12, 2020 to March 30, 2025 were analyzed using the Ordinary Least Squares (OLS) method and Granger causality tests. The OLS results indicate that increases in the VIX lead to a limited negative impact on gold prices, while no significant relationship is observed with oil prices. In contrast, strong negative associations between the VIX and cryptocurrencies were identified, suggesting that digital assets experience greater losses during periods of heightened uncertainty. Granger causality analyses reveal no causal link between gold and the VIX, whereas oil prices are found to be predictable by the VIX without exhibiting reciprocal effects. No bidirectional causality is detected for cryptocurrencies, implying that these assets display limited sensitivity to the VIX. Overall, the findings demonstrate that digital financial assets respond more strongly to VIX fluctuations compared to traditional commodities, while oil remains predictable yet passive. By presenting a comparative perspective on the behavior of different asset classes under uncertainty, this study contributes to the strategic decision-making processes of investors.