Stocks and shares plunged on Tuesday as investors retreated from risky asset classes.
The decline was led by the most representative titles in each segment. The artificial intelligence company NVIDIA Corp. (NASDAQ:NVDA), which has been the best-performing stock on Wall Street this year, plummeted 9.53%, while the world’s largest Cryptocurrency, Bitcoin (CRYPTO: BTC) fell more than 4%.
As both assets demonstrated strong price volatility, investors are concerned about which asset could experience greater swings in the coming days.
Nvidia vs. Bitcoin
According to Fintel, Nvidia’s 30-day implied volatility was 55% after the market close on Tuesday, up sharply from 46% last Friday.
For the curious, implied volatility 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 period of time.
This measure is also called projected volatility, and it hit its annual high of 90% during the stock market crash in early August.
Similarly, Bitcoin’s 30-day implied volatility, according to popular cryptocurrency options exchange Deribit showed a value of 56.03 according to available information, TradingView reported, above the 50% with which it started the month.
Previous analysis showed that both Nvidia and Bitcoin have roughly equal projected volatility, indicating a growing correlation between the two.
Bitcoin and Nvidia price movement
At press time, Bitcoin was trading at $56,761.13, down 4.01% over the past 24 hours, according to data from Benzinga Pro. Nvidia shares were down 1.9% in premarket trading.
Image via Shutterstock
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