The price correlation between Bitcoin and technology giant Nvidia (NVDA) has reached its highest level in the past year.
As Bitcoin reaches an all-time high and Nvidia’s stock value approaches $1000, the correlation between the two has attracted attention.
According to current data, the 90-day and 52-week correlation between Bitcoin and NVDA has reached a level of 0.86. The correlation has been consistently positive since July 2020, and it has now reached its highest level since January 2023, with the recent increase. This indicates that the price movements between NVDA and Bitcoin have become quite similar.
Bitcoin experienced a drop of nearly 10% from its peak of $73,798 on March 14th, while Nvidia saw a similar retreat from its all-time high of $973 on March 8th.
Commenting on the matter, Chief Investment Strategist Jeremy Grantham implied that both investment instruments could experience an explosion:
From the internet to phones, railways to canals, all past technological revolutions (AI) have been marked by a great deal of early excitement and stock market bubbles, as investors have rushed to speculate on the ultimate capabilities of the technology and price it often ahead of time. And most such revolutions have ultimately in fact been as transformative as most early investors could see, and even, from time to time, more so; but only after a great disillusionment period when the first bubble has burst.
Since the beginning of the year, Nvidia has shown a 77% increase, while Bitcoin has shown a 62% increase in performance. Meanwhile, these increases in Nvidia have led to significant gains in AI-based cryptocurrencies such as Render (RNDR), Xai (XAI), and Ocean (OCEAN).
