As Nvidia And Bitcoin Falter Amid Market Meltdown, Which Asset Is Set For Bigger Price Swings In Coming Days?

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. 

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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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