Nvidia Stock Revises ATH, Why Bitcoin Could Be Next | Bitcoinist.com - Bitcoinist

A recent comparison between BTC and nvidia suggests that bitcoin is about to retest above $60,000 per coin.

Two charts layered on each other show the ongoing correlation between a cryptocurrency and a gaming GPU company. But will the remarkable correlation continue?

Nvidia shocks ATH with bear rally

Nvidia (NVDA) has surprised stock market bears by revisiting an all-time high set back in 2021. The rally in NVDA share price can be largely attributed to its leadership role in powering AI models like ChatGPT.

The rise in artificial intelligence saved tech stocks from the brunt of the recent downturn. Nvidia is a component of the Nasdaq 100 index, which recently set a higher high.

But what does all this talk about tech stocks and AI have to do with bitcoin? To start with, it says a lot about the return to risk. Tech stocks tend to do better as a sector during market recoveries.

NVDA often leads bitcoin. BTCUSD on TradingView.com

However, there is more than just a rising tide to the principle of all boats to consider. The above chart shows the correlation between NVDA and bitcoin, and it suggests that we could see a big move in BTC like we are in chip makers.

Bitcoin vs NVDA Correlation Examined

As a caveat, there is no guarantee that an association between two properties will always hold. However, historically, there has been a strong correlation between BTCUSD and NVDA.

The correlation goes back a decade. BTCUSD on TradingView.com

The correlation appears to break when bitcoin makes a short-term peak, but eventually gets back on track with a less volatile rise than Nvidia shares. A long-term perspective is taking this relationship back several years.

If the correlation holds, bitcoin could soar to $60,000 per BTC. And that will only happen if NVDA doesn’t keep up with its momentum. If it does, and sets a significant new record, chances are high that BTCUSD will too.

While it’s too early to say, the buzz around AI could be a catalyst for a dot-com-like boom in tech stocks, which will eventually spread to crypto, adding to the expansion in financial markets. At present, this is mere speculation, but the history of the correlation suggests that the outcome is possible.