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Crypto Price Drops Following Nvidia’s Prediction of Drop in Mining Demand

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  • MtGox hackers dispatching Bitcoin into the market
  • Nvidia CFO expects to fall in cryptocurrency-related revenue

Mining of Bitcoin needed to solve a complex computational puzzle, which can only be solved by powerful hardware like ASIC. Such hardware is mostly manufactured by companies like Nvidia.

Last day, around 1pmET, the entire price dropped down following instant inflow of large blocks of bitcoin into the system, possibly assumed about the unloading done by MtGox hackers. This drop lasted for some time and eventually stabilized after selling pressure subsided.

However, shortly after the close of US market at 4pmET, Nvidia announced its quarterly results that topped their expectations.

The company also declared that it generated $289 million of sales from cryptocurrency miners in the first quarters.

However, NVDA shares fell after it announced that bigger-than-anticipated portion of its revenue came from the demand of powerful graphics processor from much volatile cryptocurrency miners.

Chief Financial Officer Colette Kress said the company expects cryptocurrency related revenue to fall 65% to $100 million by next quarter.

This statement from the company led to the second leg of selling pressure across crypto world.

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