Bitcoin’s strongest annual contact with Nvidia has sparked 80% BTC crashing hazards

Key takeaways:

• The relationship of Bitcoin along with Nvidia has risen to 0.75, the highest in one year.

• Analysts are afraid of such a correlation can result in the collapse of the BTC price up to 80%.

Bitcoin (Btc) and the Nvidia Stock (NVDA) moves more than just a sync than any point in the past year. That has some observers in the market concerned about a floating crash similar to the DOT-Com Bubble period in the late 1990s.

Dangerous Ai-on-Ai Deal poses a crypto crash risks

BTC’s 52-week ties with the world’s leading chipmaker rose to 0.75 to Friday. It came on the same week where both nvidia and bitcoin values ​​hit new record levels.

Nvidia’s sharing price rose 43.6% year-to-date, led to $ 195.30 on Thursday, while Bitcoin gained 35.25% to more than $ 126,270 on Monday.

Lockstep Rally suggest entrepreneurs who can be treated The bitcoin as a high-beta tech asset. However, similarities also put fears of a You have a bubblewith some comparisons to drawing analysts in the late-1990s DOT-COM Mania.

The commentator of the market is the Great Martis Says that the AI-Crypto rally can represent a “double bubble.”

The flow of deals associated with AI emphasizes the frenzy. This week, Openai Sumang -ayon To spend ten -ten -billion -billions of AMD chips for many years, AMD has made Openai that is one of its biggest shareholders.

The move creates an investment loop with a select group of AI companies. For example, Openai signed a $ 300 billion deal Oracle includes.

Both Oracle serves as a strategic computer partner in Nvidia, which, by the way, is planning to invest $ 100 billion in Openai.

Both Nvidia and Openai have also invested heavily in another cloud company, the coreweave. Nvidia bought $ 6.3 billion worth of its services, while Openai pledged up to $ 22.4 billion.

In short, these giant AIs are all funding to each other, keeping the money rotating inside the same small circle. As it joins AMD, the analysts called this self-reinforcing investment a “Huge red flag. “

Parallels can be drawn on the DOT-COM bubble when CISCO -funded gear purchases.

“People often forget that the Bubble of DOTCOM has caused an 80% NASDAQ crash,” said the great Martis, added:

“Today, a similar irrational expansion and a trillion-dollar crypto sector resembling a ponzi scheme exists.”

“Ai, Crypto, Quantum, Nuclear” Bubble warning

Businessman and mentor Adam Khoo Warning That the current AI and Crypto Boom can be bitcoin to one of the biggest losers when it is finished.

Related: Crypto treasury companies place a similar risk in the 2000s DOTCOM Bust

Khoo recalled that in the 2000-2002 crash, Warren Buffett’s Berkshire Hathaway gained 80% by avoiding the tech sector and holding profitable companies such as Coca-Cola, American Express and Moody’s.

“Money runs out of tech and flows with all non tech,” Khoo said, and added:

“When the AI/Crypto/Quantum/Nuclear Bubble explosion, excessive and unprofitable names in these sectors will lower 50% to 80%.”

Buffett does not hold Nvidia or shares AMD, and no “Rat poison squared“BTC. Instead he sits in a Record $ 350 billion cash pileEchoing Berkshire’s careful stance leads to the Tech Bubble explosion in 2000.

This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.