Strong

Bitcoin

Bubble

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/bitcoin-and-nvidia-exhibit-strong-market-synchronization" rel="noopener noreferrer nofollow">Bitcoin and Nvidia Exhibit Strong Market Synchronization</a><br></p>
<p style="text-align: justify"><a href="https://en.bitcoinhaber.net/bitcoin-etfs-draw-major-investments-as-market-swings-persist" rel="noopener noreferrer nofollow">Bitcoin</a> and Nvidia, the technology giant known for its high-performance chipsets, have demonstrated a notable positive correlation in their market movements, with recent data showing correlation coefficients surpassing 0.80 for both 90-day and 52-week periods. This strong linkage aligns with a period fraught with investor apprehension regarding Nvidia’s sharp valuation increase, sparking debates over a potential overvaluation in AI technology stocks.</p>
<h2 id="market-trajectory-of-bitcoin-and-nvidia">Market Trajectory of Bitcoin and Nvidia</h2>
<p style="text-align: justify">Despite a retreat from its peak value, Bitcoin has seen a 60% price surge since the year’s start, while Nvidia’s share prices have jumped by 77.5%. Over the past five years, both entities have seen their market values skyrocket, with Bitcoin’s market capitalization climbing from $70 billion to $1.43 trillion and Nvidia’s from roughly $100 billion to beyond $2 trillion. Nvidia’s success is attributed in part to the burgeoning demand for its processors, driven by AI initiatives like ChatGPT and other generative AI applications.</p>
<p style="text-align: justify">The shared movement trend of Bitcoin and Nvidia is underscored by their recent correlation coefficients, with a 90-day correlation at 0.86 and a 52-week correlation at 0.88, reflecting a strong positive correlation and indicating that the assets typically fluctuate in tandem.</p>
<h2 id="concerns-over-a-potential-ai-hype-bubble">Concerns Over a Potential AI Hype Bubble</h2>
<p style="text-align: justify">Some analysts, however, voice concerns about an AI hype that echoes the dot-com bubble’s tumultuous burst in the early 2000s. GMO’s Chief Investment Strategist Jeremy Grantham has characterized the surge in AI-centered stocks as a “bubble within a bubble,” warning that the inflated prices may not be sustainable. Grantham highlights past technological advancements, such as the introduction of the internet and railroads, which, despite their eventual transformational impact, experienced initial phases of overvaluation followed by market corrections.</p>
<p style="text-align: justify">Despite these concerns, financial experts at Citi predict that the AI bubble will not reach its peak until 2025. This projection underscores the existing uncertainty regarding the future of AI-centric securities like Nvidia and, by association, Bitcoin. The investment community continues to weigh the AI sector’s speculative excitement against the potential for long-term value creation.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/bitcoin-and-nvidia-exhibit-strong-market-synchronization" rel="noopener noreferrer nofollow">Bitcoin and Nvidia Exhibit Strong Market Synchronization</a></h5>

Bitcoin and Nvidia Exhibit Strong Market Synchronization

目錄

BH NEWS

在 2024年3月15日發表的其他文章

Dogecoin Co-Founder Speaks Out on Cryptocurrency Mental Toll

Bitcoin Spot ETFs See Chilly Inflows As Market Shivers: What Does It Mean For Investors?

OKX Ventures Invests in Meson Network to Enhance AI Infrastructure

Earn Big Without Spending a Penny! The Revolution of M2E Tokens in Bull Markets

Wemade signs onboarding contract with Saudi Arabia’s Rogue Sentinel Studios

Experts Shed Light on Bitcoin’s Current Trajectory and Price Projections

訂閱免費電子報，每天收取加密貨幣最新動態！