Bitcoin’s correlation with Nvidia has surged to 0.75, the highest in a year, raising concerns of a potential 80% BTC price drop. Both Nvidia stock and Bitcoin have hit record highs, with Nvidia up 43.6% and Bitcoin over $126,270. Market watchers fear an AI bubble reminiscent of the dot-com era.

Risky AI-on-AI deals may pose crypto crash risks as Bitcoin’s correlation with Nvidia hits 0.75. Both companies have seen record valuations, with Nvidia up 43.6% and Bitcoin over $126,270. Analysts warn of a potential 80% BTC price drop, drawing parallels to the dot-com bubble era.

The surge in AI-related deals has sparked concerns of a potential bubble, with OpenAI agreeing to invest billions in AMD chips and Nvidia planning a $100 billion investment in OpenAI. This self-reinforcing investment loop among AI giants like Nvidia and OpenAI has raised red flags among analysts.

Analysts are cautioning against the current AI and crypto boom, warning of a potential bubble burst that could result in overvalued and unprofitable stocks dropping by 50% to 80%. Warren Buffett’s Berkshire Hathaway avoided tech during the dot-com bubble, focusing on profitable companies like Coca-Cola and American Express.

Trader and educator Adam Khoo warns of a potential crash in the AI and crypto sectors, with overvalued stocks facing a 50% to 80% drop. Warren Buffett’s Berkshire Hathaway is holding a record $350 billion cash pile, echoing their cautious stance ahead of the 2000 tech bubble burst.

Read more at Cointelegraph: Bitcoin’s Strongest Yearly Correlation to Nvidia Sparks 80% BTC Crash Risks