Bitcoin’s (BTC) value has experienced a dip in the last couple of hours, and a potential reason lies in the pre-market activity on Wall Street. Specifically, shares of Nvidia (NVDA) have seen a decline of almost 3% during this period.
This downturn in Nvidia’s stock follows an announcement from Chinese regulatory bodies. They are investigating whether Nvidia may have violated anti-monopoly regulations in China during its acquisition of Mellanox Technologies, an Israeli networking firm, back in 2020.
The regulatory authority stated that Nvidia didn’t fully adhere to the conditions set during the approval of that acquisition. While a breach has been confirmed, detailed information about the nature of these violations remains undisclosed.
Alongside Nvidia’s stock struggles, the cryptocurrency market is also showing signs of weakness. Currently, Bitcoin is trading around $114,900, falling from an earlier high of $116,755 today. Furthermore, several leading tokens associated with artificial intelligence, including ICP, RENDER, FET, and GRT, have decreased by over 4.5% in the last 24 hours.
Nvidia, a prominent chip manufacturer and the world’s largest publicly traded entity by market capitalization, often serves as an indicator of risk appetite across the broader financial landscape, including cryptocurrency and AI-related assets.
Bitcoin has, historically, shown a correlation with Nvidia’s performance. Both experienced a similar bottoming out in late 2022, followed by a significant bullish trend.
Data from Macroaxis indicates that the correlation between Nvidia and BlackRock’s Bitcoin ETF over the past three months was 0.76 as of the end of the previous week.