Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.
The positive correlation is noteworthy as several analysts believe the surge in NVDA represents an AI bubble that could soon burst.continues to move in tandem with Nvidia shares as some analysts question the surge in the Nasdaq-listed chipmaker’s valuations.
In five years, bitcoin’s market capitalization has jumped to $1.43 trillion from $70 billion. Similarly, Nvidia’s market valueThe growing demand for Nvidia processors from ChatGPT and other generative artificial intelligence projects has been primarily responsible for the surge in the chip makers’ valuations.
A coefficient of over 0.80 indicates that bitcoin and NVDA are highly correlated and tend to move in the same direction.The statistical relationship is noteworthy, as some market observers, including investment management firm GMO, worry that the AI frenzy is similar to the dot-com bubble burst in 2000.
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