Nvidia Stock Shows Higher Volatility Than Major Cryptos

Nvidia (NVDA) stock is anticipated to experience more dramatic price fluctuations than major cryptocurrencies like Bitcoin and Ethereum.

Recent data shows that NVDA’s 30-day implied volatility has surged from 48% to 71%, according to Fintel. In contrast, Bitcoin’s implied volatility on Deribit’s index has decreased from 68% to 49%, and Ethereum’s has dropped from 70% to 55%.

Implied volatility reflects the market’s expectations for price swings and is influenced by the demand for options. NVDA, a key player in AI and former GPU producer for crypto mining, has become a significant market indicator since ChatGPT’s launch in late 2022.

Both NVDA and Bitcoin hit lows in late 2022 and have shown a strong positive correlation since, with a 0.73 correlation in 90-day price movements. However, NVDA’s stock has fallen about 26% from its peak of $140 last month, while Bitcoin remains in the $60,000 to $70,000 range.

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The increase in NVDA’s implied volatility may be linked to hedging activities by market makers, a trend also observed in the crypto sector. Griffin Ardern from BloFin explains that the current high volatility in NVDA is comparable to the extreme price fluctuations seen in cryptocurrencies, driven by negative gamma trading strategies which can amplify market volatility.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.