Bitcoin May Reach Above $60,000 Per Coin, According to Comparison with Nvidia
As per recent comparisons between Bitcoin and Nvidia, the cryptocurrency is expected to revisit above $60,000 per coin. The two charts, when layered over one another, show a correlation between Bitcoin and the gaming GPU company. However, it remains to be seen whether this correlation will continue.
Nvidia (NVDA) has surprised stock market bears by revisiting all-time highs set back in 2021. The rally in NVDA share prices can be largely attributed to its leadership role in powering AI models like ChatGPT. The rise in artificial intelligence recently saved tech stocks from the sting of a recession. Nvidia is a component in the Nasdaq 100 Index, which recently set a higher high.
But what does this have to do with Bitcoin, tech stocks, and AI? To start, it says a lot about risk appetite returning. Tech stocks tend to outperform as a sector during a market recovery. However, there is more than just the rising tide lifts all boats theory to consider. The chart above shows the correlation between NVDA and Bitcoin, suggesting that we could see a big move in BTC much like we have in the chip maker.
As a caveat, there is no guarantee that a correlation will always remain between two assets. Historically, however, there is a strong correlation between BTCUSD and NVDA. The correlation appears to break when Bitcoin makes a short term peak, but eventually gets back on track with less volatile growth than in Nvidia shares. A longer-term view shows this relationship going back for several years.
If the correlation continues, Bitcoin could climb as high as $60,000 per BTC. And that’s only if NVDA doesn’t keep up its momentum. If it does, and makes a significant new record high, the probability is high that BTCUSD does as well. Although it’s early to say, the buzz surrounding AI could be a catalyst for a dot com-like boom in tech stocks, which ultimately would also spill into crypto, adding to the breadth in financial markets. Currently, this is merely speculation, but the history of correlation suggests the outcome is a possible one.
In conclusion, the correlation between Bitcoin and Nvidia suggests that the cryptocurrency may reach above $60,000 per coin. However, it remains to be seen whether this correlation will continue, and there is no guarantee that it will always remain between the two assets.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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