Stocks and equities plummeted Tuesday as investors pulled out of risky asset classes.
The downturn was led by respective bellwethers of each segment. AI juggernaut NVIDIA Corp. NVDA, the best-performing stock on Wall Street in 2024, tumbled 9.53%, while the world’s largest cryptocurrency Bitcoin BTC/USD fell over 4%.
With both assets demonstrating strong price volatility, investors wondered which asset may experience more severe swings in the coming days.
Nvidia Vs Bitcoin: According to Fintel, Nvidia's 30-day implied volatility (IV) was 55% after Tuesday's market close, a substantial increase from 46% recorded last Friday.
For the curious, 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.
Also called projected volatility, this metric hit a yearly high of 90% during the early August market meltdown.
Similarly, Bitcoin’s 30-day IV as tracked by popular cryptocurrency options exchange Deribit showed a reading of 56.03% as of this writing, according to TradingView, up from 50% at the beginning of the month.
The aforementioned analyses showed both Nvidia and Bitcoin having roughly equal projected volatility, indicating a growing correlation between them.
Price Action: At the time of writing, Bitcoin was exchanging hands at $56,761.13, down 4.01% in the last 24 hours, according to data from Benzinga Pro. Shares of Nvidia were down 1.9% in pre-market trading.
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