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Bitcoin [BTC] and other cryptocurrency mining decline hits the market; AMD reports 22% loss

Akash Anand



Bitcoin [BTC] and other cryptocurrency mining decline hits the market; AMD reports 22% loss
Source: Unsplash

Recently, Advanced Micro Devices [AMD], announced its fourth quarter reports, which showed a 22% decline after dwindling interest from the cryptocurrency mining community.

Cryptocurrencies like Bitcoin [BTC] require a computational power, which is provided by the Graphics Processing Unit [GPU] of the chipsets. Chipmakers like AMD and NVIDIA had basked in the cryptocurrency boom of late 2017 when Bitcoin had breached the $19,000 mark.

Summit Insights Group analyst Kinngai Chan said:

“The miss was due to GPU. AMD had too high an exposure to the crypto-currency market. Additionally, they do not have a competitive line-up in the PC Gaming market.”

In an earlier report on the second quarter analysis, AMD had stated that the decline in chip sales was due to miners was actually a positive sign.

Lisa Su, the CEO of AMD, had earlier predicted that the sales would decline with succeeding quarters and it has been reflected this time. After the latest company release, the CEO stated:

“In graphics, the year-over-year revenue decrease was primarily driven by significantly lower channel GPU sales, partially offset by improved OEM and data center GPU sales.”

AMD and NVIDIA have also been hit by the release of more affordable and faster processors applications like Honeyminer, a lure for the cryptocurrency mining enthusiasts.

AMD speculates that the reason for the double-digit decline in sales is because of the roller coaster ride of cryptocurrency regulations in the United States. Bitcoin [BTC], the largest cryptocurrency in terms of market cap, has always been in the limelight when it comes to trade regulations and restrictions proposed by financial watchdogs like the Securities and Exchange Commission [SEC].

The SEC had also put a hold on passing the Bitcoin ETF’s, which has again generated a sort of backlash in the Bitcoin market as well as the entire cryptocurrency market as a whole.

Just recently, Kara Stein, the SEC Commissioner, spoke about the Bitcoin ETF and stated:

“The nature of the commodity, the OC pricing sources, and access to individual investors are a few points that have caused a hiccup. For something like the Bitcoin ETF to come to fruition, it has to adhere to a few basic guidelines.”

Some of the guidelines mentioned by the SEC official covered characteristics like accurate valuations, ensuring physical custody and providing liquidity for investors so that they are able to withdraw the assets at any time.

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Bitcoin’s [BTC] dump may have triggered migration of BTCs worth hundreds of millions




Bitcoin's [BTC] dump may have triggered migration of BTCs worth hundreds of millions
Source: Unsplash

Bitcoin dropped by 3.55% over 3 hours, an approximate drop of $200, causing many altcoins to dip by more than 8%. Although it might be a coincidence, thousands of Bitcoins started to migrate from wallets to exchanges, wallets to wallets, and exchanges to wallets.

Whale Alert, a Twitter user, pointed out the same in his tweets. A total of  25,000 BTC were sent in under 20 minutes, in multiples of 5000 BTC each, in a wallet to wallet transaction. Two of these transfers were initiated from an unknown wallet [3BYv2L9zCFYpvRQXakqkVWa7JyRw6Q9ZAm] to two other unknown wallets [3PWNGS2357TnjRX7FpewqR3e3qsWwpFrJH, 3CAF6ZjtJKaHiJixViXncTRwG3N5ss9vn4].

These 5 transfers were worth approximately $140 million. The third transfer took place from multiple wallets to a single wallet [3HuUiXmKN3beQSoM97kWjK1fesWWJvKvaZ].

Additionally, there were two massive transactions that took place two hours after the drop; the first transaction involved 14,999 BTC, while the second involved 11,000 BTC.

The former transaction was sent from two wallets to a single wallet [3GaB3nRWA1PLc3XQkkbpVtFwYYZEuMxD4i], which is the balance of the wallet. The latter transaction was similar to the one mentioned above, as the transaction originated from two wallets.

Another transaction containing 9,000 BTC was transferred from 357R3FeNmySYeHuRfyhFd6nMwzoLDdjfwV to 3NmHmQte2rP8pS54U3B8LPYQKkpG1pFF69. The sender has approximately 9,412 BTC after the transfer, while the recipient has 9,000 BTC.

All of the above transactions were worth approximately $332 million. The massive BTCs transferred could be due to the recent fall in the price. It can also be speculated that BTC whales were securing their profits earned from the shorts.

A Twitter user @Emperor_YZ commented,

“and who say the fee is high, just 30,360 sat ($1.67)🤔 for a $82.37 million transfer …”

Another user, @Omarin0, commented,

“It would have also been 1.67$ for a 1.67$ transfer. 100% fee. How nice”

@Emperor_YZ replied,

“wrong, you can use LN or other layer 2 apps to do small amount payments 😎 for BTC base layer, network security is always top priority, L2 is super cheap and can settle at base layer later”

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