Bitrabo Editorial
Recent observations and charts suggest a possible correlation between Bitcoin and Nvidia that can lead the cryptocurrency to revisit above $60,000 per coin. Nvidia has been surprising stock market bears by revisiting all-time highs set back in 2021 and has been leading the way in powering AI models, such as ChatGPT, thereby playing a critical role in the Nasdaq 100 Index. The correlation between Nvidia and Bitcoin goes back a decade, indicating that there might be a significant amount of volatility in the near future.
If the correlation continues, Bitcoin could climb as high as $60,000 per BTC. However, the correlation between the two assets is not guaranteed to persist in the long run. Historically there is a strong correlation between BTCUSD and NVDA, but it appears to break when Bitcoin makes a short-term peak.
The probability that BTCUSD reaches new highs is high if NVDA continues to break records. There is buzz surrounding AI that could trigger a dot com-like boom in tech stocks. This could spill into the crypto space, adding breadth to financial markets. Although it’s too early to say for sure, the history of correlation hints at a possible outcome.