Key takeaways<\/strong>:<\/p>\n Bitcoin\u2019s correlation with Nvidia has surged to 0.75, its highest in a year.<\/p>\n<\/li>\n Analysts fear such a correlation may result in BTC price dropping by up to 80%.<\/p>\n<\/li>\n<\/ul>\n Bitcoin (BTC<\/a>) and Nvidia stock (NVDA) are now moving more in sync than at any point in the past year. That has some market watchers worried about a looming crash similar to the dot-com bubble era in the late 1990s.<\/p>\n BTC\u2019s 52-week correlation with the world\u2019s top chipmaker has climbed to 0.75 as of Friday. It comes in the same week in which both Nvidia and Bitcoin valuations have hit new record levels.<\/p>\n Nvidia\u2019s share price has soared 43.6% year-to-date, topping $195.30 on Thursday, while Bitcoin gained 35.25% to over $126,270 on Monday. <\/p>\n The lockstep rally suggests traders may be treating Bitcoin as a high-beta tech asset<\/a>. Yet, the parallels are also fueling fears of an AI bubble<\/a>, with some analysts drawing comparisons to the late-1990s dot-com mania.<\/p>\n Market commentator The Great Martis said<\/a> that the AI-crypto rally may represent a \u201cdouble bubble.\u201d<\/p>\n The surge in AI-linked deals underscores the frenzy. This week, OpenAI agreed<\/a> to spend tens of billions on AMD chips over several years, with AMD set to make OpenAI one of its biggest shareholders. <\/p>\n The move is creating an investment loop among a select group of AI companies. For instance, OpenAI has signed a $300 billion deal with Oracle<\/a>. <\/p>\n The same Oracle is serving as a strategic computer partner to Nvidia, which, by the way, plans to invest $100 billion in OpenAI. <\/p>\n Both Nvidia and OpenAI are also investing heavily in another cloud company, CoreWeave. Nvidia has bought $6.3 billion worth of its services, while OpenAI has promised up to $22.4 billion. <\/p>\n In short, these AI giants are all funding each other, keeping the money spinning inside the same small circle. As AMD joins it, analysts are calling this self-reinforcing investment loop a \u201cmassive red flag<\/a>.\u201d<\/p>\n Parallels can be drawn to the dot-com bubble when Cisco funded gear purchases<\/a>, effectively fueling demand for its own networking infrastructure, and inflating valuations until the bubble burst.<\/p>\n \u201cPeople often forget that the Dotcom bubble caused an 80% Nasdaq crash,\u201d The Great Martis said, adding: <\/p>\n \u201cToday, similar irrational exuberance and a trillion-dollar crypto sector resembling a Ponzi scheme exist.\u201d<\/p><\/blockquote>\n Trader and educator Adam Khoo warns<\/a> that the current AI and crypto boom may turn Bitcoin into one of the biggest losers when it ends.<\/p>\n Related: <\/strong><\/em>Crypto treasury companies pose a similar risk to the 2000s dotcom bust<\/strong><\/em><\/a><\/p>\n Khoo recalls that during the 2000\u20132002 crash, Warren Buffett\u2019s Berkshire Hathaway gained 80% by avoiding the tech sector entirely and holding profitable companies such as Coca-Cola, American Express, and Moody\u2019s.<\/p>\n \u201cMoney ran out of tech and flowed into all the non-tech,\u201d Khoo says, adding<\/p>\n \u201cWhen the AI\/Crypto\/Quantum\/Nuclear bubble bursts, the overvalued and unprofitable names in these sectors will drop 50% to 80%.\u201d<\/p><\/blockquote>\n Buffett neither holds Nvidia nor AMD shares, and not \u201crat poison squared<\/a>\u201d BTC. He is instead sitting on a record $350 billion cash pile<\/a>, echoing Berkshire\u2019s cautious stance ahead of the tech bubble burst in 2000.<\/p>\n \u201cWhen the AI\/Crypto\/Quantum\/Nuclear Bubble bursts eventually, the overvalued and unprofitable stocks in these sectors will drop 50% to 80%,\u201d warned Khoo.<\/p>\n This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/p>\n <\/div>\n","protected":false},"excerpt":{"rendered":" Key takeaways: Bitcoin\u2019s correlation with Nvidia has surged to 0.75, its highest in a year. Analysts fear such a correlation may result in BTC price dropping by up to 80%. Bitcoin (BTC) and Nvidia stock (NVDA) are now moving more in sync than at any point in the past year. That has some market watchers […]<\/p>\n","protected":false},"author":2,"featured_media":407684,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-407678","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/407678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=407678"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/407678\/revisions"}],"predecessor-version":[{"id":407686,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/407678\/revisions\/407686"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/407684"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=407678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=407678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=407678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Risky AI-on-AI deals pose crypto crash risks<\/h2>\n
\u201cAI, crypto, quantum, nuclear\u201d bubble warning<\/h2>\n