AI Stocks Are Now More Volatile Than Bitcoin. They Could Also Be the Reason for Bitcoin's Reversal

Artificial intelligence stocks continue to dominate investor attention, translating into more volatility in equities in than the once famously volatile Bitcoin (CRYPTO: BTC) market.

AI Stocks Are Now More Volatile Than Bitcoin

Jeroen Blokland, founder of the Blokland Smart Multi-Asset Fund, on Friday highlighted an unusual reversal in market dynamics: semiconductor stocks tied to the AI boom are experiencing substantially more volatility than Bitcoin.

Blokland noted that Bitcoin is down roughly 50% from its peak 10 months ago.

Meanwhile, the 60-day realized volatility of the iShares Semiconductor ETF (NASDAQ:SOXX) has surged to around 70%, compared with roughly 30% for Bitcoin.

“Bitcoin, and pretty much every other asset class, has been completely overshadowed by AI and tech stocks,” Blokland said.

He argued that the divergence 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 volatility gap says little about Bitcoin’s long-term fundamentals. For investors who view Bitcoin as a trusted digital store of value in a debt-driven monetary system, he argued that patience remains key.