Bitcoin and Nvidia Rally in Tandem as AI Bubble Looms

• Bitcoin and Nvidia stock have shown increasing positive correlation over past year, with 90-day correlation at 0.86 and 52-week at 0.88, highest levels in months • Nvidia valuations have surged on growing demand for its chips from AI projects like ChatGPT • Some analysts see signs of a bubble in AI stock valuations that may eventually burst • Bitcoin has also rallied 60% YTD alongside the tech sector
• Strategists speculate the AI bubble could last into 2025 before facing a downturn