Nvidia's record market capitalization of $4 trillion raises questions about the relationship between big tech and Bitcoin. As Nvidia's stock hits record levels, Bitcoin may be carving its own path.
Nvidia and Bitcoin Stock Dynamics
Nvidia's shares reached an all-time high of $164.32, temporarily making it the first company to achieve a $4 trillion market cap. The rise is fueled by insatiable demand for AI chips, attracting investor attention as Nvidia is seen as a cornerstone in the unfolding artificial intelligence revolution.
Declining Correlation between Bitcoin and Nvidia
For much of 2024 and early 2025, Bitcoin and Nvidia moved in tandem, with correlation factors reaching as high as 0.80 or above. However, newer data shows this connection starting to weaken. The current three-month average is 0.69, but recent figures dropped to about 0.36, indicating a decoupling.
Impact of Nvidia on Crypto Mining Supply Chains
Nvidia's leadership in the AI chip market has spill-over effects across the digital asset realm, particularly in crypto mining. The surging AI demand is restricting supply chains for Bitcoin mining devices, potentially increasing costs and lead times.
Nvidia's achievement signals an era of independence for Bitcoin, as macroeconomic forces and crypto-specific factors necessitate a re-evaluation of market interactions.
