The Aftermath of Bitcoin’s “Crypto Hangover”
Meta Description: Want to know what happened to the tech industry after Bitcoin’s crash? Then keep reading!
Bitcoin’s current drop has created a huge issue for one of Silicon Valley’s tech firms, Nvidia. For instance, Nvidia’s stock has dropped 17% in the NASDAQ listing on Thursday, after it’s financial results were lower than expected.
Nvidia is a computer chip producing company that specializes in making hardware for cryptocurrency mining and video game consoles. Nvidia’s GPU cards make it easier for mining rigs to make bitcoin and other cryptocurrencies by solving advanced math problems.
However, Bitcoin’s prices have dropped almost more than half since 2017. This result has lead to a hit in Nvidia’s demand. This resulted in an unsolved inventory of computer products to pile up.
Jensen Huang, CEO of Nvidia stated that”This crypto hangover has lasted longer than we expected.” This means that Nvidia is in a state of confusion as they attempt to adjust their market share after Bitcoin’s crash.
And based on the current market trends, it looks like things will become worse before they are better. Nvidia states that analysts expect their holiday revenues to be at $2.7 billion in comparison to previous forecasts of about $3.4 billion.
How Has it Affected Other Firms?
Nvidia isn’t the only US-based tech firm that’s suffering from the latest crypto crash. Nvidia’s main rival AMD has received lower than their expected earnings in the previous quarter, blaming the crash for its slowdown of sales. AMD expects their revenue to fall under their analyst expectations this quarter as well.
AMD’s stock dropped to about 5% after a few hours of trading.
The reduction in stocks had occurred last Friday. SoftBank has dropped by 3% while Nintendo has reduced its value by 9%. And because of this, we can see that the cryptocurrency crash has lead to a large reduction in many popular firms within the tech and crypto industry.
How is the Crypto Market Affected?
So far, the crypto market cap has reduced by $42 billion within six days. As the market begins to drop, we can see more cryptocurrency pairs lose in value. For example, Bitcoin Cash’s price fall has started to bottom out. This is due to a controversial hard work that leads to a multitude of sell-offs.
Although some exchanges like Bitfinex stated that BCH’s price is at $250, its current aggregate price is at $360.
Bitcoin’s price is reduced to $5,100. However, it’s dominance still reigns strong within the crypto market at a rate of 53%. This suggests that investors aren’t moving in the asset to preserve value; a trend that we’ve seen in similar wipeouts.
According to crypto-rating.com, Ripple has reduced in value by 7.1% and replaced ETH as the second highest cryptocurrency. The gap between the two has increased from around $500 million to its present $3.5 billion that’s seen today.
We can see the fluctuation in the crypto and tech market after the previous “Bitcoin Hangover.” And time progresses, we can see that companies are attempting to survive despite the crash. Conclusively, we hope to see how the cryptomarket will correct itself within the following months.