Nvidia (NVDA) stock has become increasingly correlated with Bitcoin since late 2022. Recently, Nvidia's 30-day option implied volatility surged from 48% on July 23 to 71% on July 30, a stunning surge in volatility.
In contrast, crypto market volatility has dropped significantly. Bitcoinās DVOL index dropped from 68% to 49%, and Ethereumās ETH DVOL index also dropped from 70% to 55%. It seems that Bitcoin and Ethereum are now as stable as old friends, giving the market a "calm".
In summary, Nvidia's stock market has been on a roller coaster, while the cryptocurrency market has shown stability. This change warrants investors re-examining their asset allocation.
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