As Bitcoin (BTC) enters a bearish mode along with the rest of the cryptocurrency sector, its market capitalization is demonstrating rare behavior against stocks, declining in comparison to that of Nvidia (NASDAQ: NVDA), as senior commodity strategist at Bloomberg, Mike McGlone, noted.
Specifically, McGlone said that the Bitcoin-to-Nvidia market cap ratio was at about 0.53, which is “the lowest since August 2017, when the crypto averaged around $4,000,” possibly “showing concentration extremes in the stock market,” as he explained in his analysis shared on June 6.
In fact, “at about half the market cap of Nvidia on June 2,” Bitcoin had “peaked near a market cap of $1.3 trillion in 2021, on the back of the biggest liquidity pump in history,” which could have “implications for the benchmark [artificial intelligence (AI)] stock approaching the $1 trillion mark now,” he stressed.
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Furthermore, according to Bloomberg’s expert, such a relationship between cryptocurrencies and stocks is highly unusual:
“Down about 5% in 2Q, high-beta Bitcoin shows little endorsement of the roughly 10% jump in the Nasdaq 100 Stock Index, of which Nvidia is ranked fourth in weight. Bitcoin down vs. the Nasdaq up is rare. It may be a question of the Nasdaq’s ability to lift all boats, and cryptos are indicating no.”
Bitcoin price analysis
Meanwhile, Bitcoin was trading at the price of $25,751, down 3.73% on the day and declining 8.03% over the week, as it added up to the losses of 10.83% across the previous 30 days, as per data retrieved on June 6.
Nvidia price analysis
At the same time, Nvidia was changing hands at $391.71, declining 0.40% in the last 24 hours and 3.52% in the previous five days but increasing a more significant 34.37% on its monthly chart, according to the most recent data.
Furthermore, the price of Nvidia’s stock has increased by 173.64% since the beginning of the year, which is compared to the 54.79% that Bitcoin has gained during the same period.
Indeed, long-term price charts add to the current disparity between the flagship decentralized finance (DeFi) asset and shares of the American AI computing company after Bitcoin’s correlation with the Nasdaq 100 dropped to a one-year low and has continued in a similar fashion.
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