AI Stocks Outpace Bitcoin in Volatility, a Shift with Long-Term Implications
The volatility in AI stocks has surpassed that of Bitcoin (CRYPTO: BTC) for the first time, according to Jeroen Blokland, founder of the Blokland Smart Multi-Asset Fund. The 60-day realized volatility of the iShares Semiconductor ETF (NASDAQ:SOXX) has surged to around 70%, compared with roughly 30% for Bitcoin.
Blokland noted that Bitcoin is down approximately 50% from its peak 10 months ago, while AI stocks tied to the boom are experiencing substantially more price swings. 'Bitcoin, and pretty much every other asset class, has been completely overshadowed by AI and tech stocks,' Blokland said.
The divergence in volatility reflects an unprecedented amount of price discovery or speculation taking place in AI stocks while relatively little is happening in Bitcoin. Blokland stressed that the gap says little about Bitcoin's long-term fundamentals for investors who view it as a trusted digital store of value in a debt-driven monetary system.