COINTURK NEWSCOINTURK NEWSCOINTURK NEWS
  • Real-Time News Feed
  • Bitcoin
  • Altcoin
  • Ethereum
  • Technology News
  • Advertise
  • Contact
  • TURTURTUR
  • ESESES
Search
© 2024 COINTURK NEWS. All Rights Reserved.
Reading: Strong Correlation Between Bitcoin and Nvidia Signals Market Optimism
Share
Languages
  • TürkçeTürkçe
  • EspañolEspañol
Font ResizerAa
COINTURK NEWSCOINTURK NEWS
Font ResizerAa
Search
  • Real-Time News Feed
  • Bitcoin
  • Altcoin
  • Ethereum
  • Technology News
  • Advertise
  • Contact
  • TURTURTUR
  • ESESES
Follow US
© 2025 BLOCKCHAIN Information Technologies. >> COINTURK NEWS
Powered by LK SOFTWARE
COINTURK NEWS > Bitcoin (BTC) > Strong Correlation Between Bitcoin and Nvidia Signals Market Optimism
Bitcoin (BTC)

Strong Correlation Between Bitcoin and Nvidia Signals Market Optimism

In Brief

  • Bitcoin and Nvidia share a strong positive correlation above 0.80.

  • Both assets have seen significant gains since the start of the year.

  • AI excitement has fueled Nvidia's growth, echoing dot-com era concerns.

COINTURK NEWS
COINTURK NEWS 1 year ago
Share
SHARE

Bitcoin (BTC) and the Nasdaq-listed chip manufacturer Nvidia have shown a strong positive relationship, with both 90-day and 52-week correlation coefficients rising above 0.80. This correlation is particularly noteworthy as it coincides with the period when analysts expressed concerns about Nvidia’s value increase, which some believe represents a potential AI bubble.

Contents
Correlation Coefficient Above 0.80Reminiscent of the Dot-com Bubble

Correlation Coefficient Above 0.80

Despite Bitcoin‘s pullback from its record high, current data shows that both assets have made significant gains since the beginning of the year; Bitcoin’s price increased by 60%, while Nvidia’s shares rose by 77.5%.

Over the last five years, both Bitcoin and Nvidia have experienced exponential growth in market value. Bitcoin’s market cap rose from $70 billion to $1.43 trillion, while Nvidia’s market cap soared from approximately $100 billion to over $2 trillion. Nvidia’s growth is partly due to increased demand for the company’s processors from AI projects like ChatGPT and other generative AI applications.

The correlation between Bitcoin and Nvidia has reached some of the highest levels in years, with a 90-day correlation coefficient of 0.86 and a 52-week correlation of 0.88. A coefficient above 0.80 indicates a strong positive correlation, suggesting that the two assets tend to move in the same direction.

Reminiscent of the Dot-com Bubble

However, some market observers, including investment management firm GMO, are raising concerns about an AI frenzy similar to the dot-com bubble that burst in 2000, cautioning investors. GMO’s Chief Investment Strategist Jeremy Grantham described the surge in AI-based stocks, fueled by excitement over technologies like ChatGPT, as a potential “bubble within a bubble” that could soon deflate.

Grantham pointed to historical precedents, noting that hype and stock market bubbles accompanied the early stages of previous technological breakthroughs like the internet and railroads. While these technologies ultimately proved transformative, they also went through periods of disappointment and market correction before realizing their full potential.

Despite bubble concerns, strategists at Citi, according to Investing.com, believe the AI bubble will continue to inflate until 2025. This forecast points to the uncertainty surrounding the future trajectory of AI-related assets like Nvidia and, indirectly, Bitcoin, as market participants grapple with the balance between hype and long-term value realization in the AI sector.

You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

You Might Also Like

Bitcoin Reaches New Heights as Institutional Investments Surge

Bitcoin Surges Impact Market as Key Levels Influence Short-term Direction

Bitcoin Surges as Institutional Funds Drive Up Demand

Bitcoin Soars: Matt Hougan Predicts Dramatic Price Increase

Méliuz Boosts Shareholder Value with Bold Bitcoin Purchase

COINTURK NEWS 15 March, 2024 - 12:56 pm 15 March, 2024 - 12:56 pm
Share This Article
Facebook Twitter
Share
Previous Article Ethereum Faces Strong Selling Pressure After Recent Upgrade
Next Article Bitcoin Faces Potential 20% Correction as Analysts Warn of Price Drop
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Stay Connected

8.1k Like
21.1k Follow
1.1k Follow

Latest News

Ethereum Surges as Major Investments Lead the Way
Ethereum (ETH)
Bitcoin Reaches New Heights as Institutional Investments Surge
Bitcoin (BTC)
Moody’s Downgrades US Credit Rating Signaling Economic Risks
Cryptocurrency News
Crypto Prices Rally Beyond Forecasts and Exceed Expectations
Technical Analysis
//

COINTURK was launched in March 2014 by a group of technology enthusiasts who believe that Bitcoin will be as important as the internet in the world of the future thanks to the amazing technology underlying it.

CRYPTOCURRENCY LIVE PRICES

  • Bitcoin (BTC) Live Price
  • Ethereum (ETH) Live Price
  • Ripple (XRP) Live Price
  • Solana (SOL) Live Price
  • Dogecoin (DOGE) Live Price
  • Cardano (ADA) Live Price
  • Chainlink (LINK) Live Price

OUR PARTNERS

  • COINMARKETCAP
  • COINGECKO
  • BITCOINHABER
  • BH NEWS
  • 21MILYON
  • NEWSLINKER

OUR COMPANY

  • About Us
  • Cookie Policy
  • Advertising
  • Contact
COINTURK NEWSCOINTURK NEWS
Follow US
© 2025 BLOCKCHAIN Information Technologies. >> COINTURK NEWS
Powered by LK SOFTWARE
Welcome Back!

Sign in to your account

Lost your password?