As cryptocurrency prices crash, so will Nvidia’s stock

<p>The bursting of the crypto bubble appears to be a bigger threat to NVDA stock than ever before.</p> <p>Nvidia (VDA) stock will almost certainly outperform the Nasdaq exchange and the S&P 500 in the long run, thanks to strong demand for its chips from data centres and companies incorporating artificial intelligence. However, there are numerous indications that the bursting of the crypto bubble will have a significant impact on NVDA stock in the short to medium term.</p> <p>I've previously warned that a crypto crash could derail Nvidia's stock performance. Recent events, however, have made me much more certain that cryptos are about to crash, and that the fall is likely to reduce Nvidia's stock price significantly.</p> <p>Furthermore, even if cryptos do not plummet dramatically, recent developments have Nvidia's revenue from crypto miners on the verge of falling.</p> <p>The Cryptocurrency Bubble Has Burst</p> <p>Bitcoin (BTC) and other prominent cryptocurrency names have fallen in recent weeks, defying crypto bulls' predictions. Bitcoin has dropped 37% in the last three months, Ethereum (ETH) has dropped 38%, and Cardano (ADA) has dropped 49%. And, while I am aware that there are thousands of other cryptocurrencies, some of which have recently rallied, I am sceptical that the gains of those flash-in-the-pan names will be sustained as the overall macro environment for cryptos becomes more bearish.</p> <p>For two reasons, macro trends are becoming more challenging for cryptos. One is that government stimulus in the United States is rapidly fading, while the Federal Reserve is about to dramatically reduce its own accommodations and has already begun doing so. The recent, sharp drop in the top cryptos in the aftermath of stimulus cuts and a surge in inflation has reinforced my belief that government stimulus, rather than inflation or concerns about traditional currencies, is the primary factor determining crypto prices.</p> <p>Increased government regulation is another macro factor that will make the crypto e