Cryptocurrencies, including Bitcoin BTC/USD, have long been perceived as highly volatile assets, especially by traditional investors, and this trait has somewhat hindered their mainstream acceptance.
Interestingly, AI powerhouse NVIDIA Corp. NVDA, which has enjoyed a spectacular run in the equity market this year, could record more price volatility than the world’s largest cryptocurrency in the days to come.
What Happened: Nvidia's shares have surged 122% year-to-date, emerging as the bellwether for not just AI and tech stocks, but the broader financial market.
The stock's 30-day implied volatility (IV) surged to 81% after its last market close Friday, according to Fintel, a significant spike from 48% just a couple of weeks ago. IV is a forward-looking measure of volatility used by options traders. It is used to determine the expected price fluctuations of a stock over a specific time period.
In comparison, Bitcoin's 30-day implied volatility plunged from 67% to 48% until Aug. 1, according to TradingView. Even though the weekend sell-offs triggered a rebound, the asset's implied volatility continued to trail at 62%.
See Also: Bitcoin A CIA Creation? Tucker Carlson Believes So: ‘They Got There First. It’s Honey Trap’
Why It Matters: The spike in volatility in the two asset classes comes amid a raging downturn in capital markets.
Cryptocurrencies, led by Bitcoin, saw their market capitalization sink below $2 trillion for the first time since late February, while U.S. stock futures plunged Sunday night as recession fears engulfed investors.
Price Action: At the time of writing, Bitcoin was trading at $51,591.07, plunging 16.19% in the last 24 hours, according to data from Benzinga Pro. Shares of Nvidia fell 1.78% to close at $107.27 on Friday.
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