In a surprising turn of events, the company called Nvidia, which is famous for its work in computer technology and artificial intelligence, is having larger price changes than Bitcoin and Ether. These two are popular forms of digital money known as cryptocurrencies. The expected amount of change in Nvidia’s price over the next 30 days has increased greatly, going up from 48% to 71%.

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• Nvidia, a big tech company, is seeing bigger changes in its price than Bitcoin and Ether, two popular digital currencies.
• Bitcoin and Ether are seeing less change in their prices over 30 days.
• Market makers could cause Nvidia’s bigger price changes. These people buy and sell a lot, which can make prices change more.

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Nvidia Experiences Larger Price Swings Than Bitcoin and Ether

At the same time, the amount of price change expected for Bitcoin and Ether in the next 30 days is going down. The expected change for Bitcoin has decreased from 68% to 49%, and for Ether, it has gone down from 70% to 55%.

These expected price changes, which we call ‘implied volatility’, can be influenced by how much people want to buy something called options. Options are like agreements that protect people from extreme changes in price, whether the price goes up a lot or drops down a lot.

Nvidia is known for making special computer parts that were once used for creating new cryptocurrencies. Since late 2022, when both Nvidia and Bitcoin were at their lowest prices, their prices have mostly been moving in the same direction. The closeness in the price movement of Nvidia and Bitcoin over the last 90 days is about 73%.

However, the price of Nvidia has dropped by about 26% since it reached its highest price of $140 last month. This might worry those involved in the cryptocurrency market. According to a website called CoinDesk, Bitcoin’s price has been moving between $60,000 and $70,000.

The rise in Nvidia’s expected price changes could be due to the actions of people called market makers. These are people who adjust their buying and selling to match the price changes, aiming to keep a balanced position. But, this can sometimes lead to more price changes in the market.

A man named Griffin Ardern, who works at a cryptocurrency financial platform called BloFin, said that ‘Negative gamma doesn’t just dominate the crypto market. The U.S. stock market has also seen big drops in SPY and QQQ due to negative gamma hedging. This high risk of big changes has caused Nvidia’s expected price changes in the next month to be much larger than those of cryptocurrencies like Bitcoin and Ether.’

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