Connect with us


Nvidia, Bitcoin chip-marker’s stock to be stayed away from because of cryptocurrency market




Nvidia, Bitcoin chip-marker's stock to be stayed away from because of cryptocurrency market
Source: Unsplash

The entire cryptocurrency market has plunged to the bear’s attack since January 2018. The beginning of the month seemed all bright and shiny for the coin, however, the market decided to jump to the darker side mid-way. This not only had an adverse effect on the investors but also on several firms working in the blockchain and cryptocurrency space. Notably, the firms that were hit by the bearish market are the mining firms and the chip-makers.

According to the latest reports, one of the recently fallen firms is noted to be Nvidia Corp, a Bitcoin chip-maker giant. The company has lost around half of its value in the past four months alone. Although the plunge of Bitcoin and other cryptocurrencies is not stated to be one of the key reasons for the fall of Nvidia’s shares, it is noted to be a major contributing reason for the wariness of investors over the firm’s future.

In an interview with CNBC, Gina Sanchez said:

“”I think this [Nvidia] is up in line with the S&P but no more. I really don’t see this as an interesting buy at all here because you still have significant slowing in the cloud market [….]”

She further said:

“You are seeing this not only in Nvidia but across the chip makers. And also Nvidia was the darling of the crypto-craze, which has now fallen off. And so to expect that that’s not going to have an impact on Nvidia’s earning over time, I think this is a stock to stay away from right now”

To add on, Nvidia witnessed a dramatic drop in the market after it released guidance for Q4 of 2019. The company is now expecting revenue of $2.2 billion for Q4 fiscal 2019, slashing over $500 million from its previous forecast.

The firm clearly stated that the reason for the reduction in numbers is the drop of Bitcoin and other cryptocurrencies in the market, which resulted in less demand for chips from the miners. The firm stated that this drop was anticipated. However, on the contrary, China’s weakening economy caught the company off-guard as it is noted to be the second main reason for the slash in the revenues.

Subscribe to AMBCrypto’s Newsletter

Follow us on Telegram | Twitter | Facebook

Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.


Bitcoin [BTC] will take another 22 years to regain its all-time high, says research analyst

Akash Anand



'Bitcoin [BTC] will take another 22 years to regain its all-time high', says research analyst
Source: Pixabay

Bitcoin [BTC]’s rise and fall has been a consistent event that has grabbed headlines in the cryptocurrency space. According to the latest financial analysis conducted by UBS research analyst Kevin Dennean, the fans of the cryptocurrency will have to wait for over 22 years to climb back to its earlier heights of $19,000- $20,000.

Dennean made these claims comparing the pattern of Bitcoin and the cryptosphere with the trends of other financial system crashes like the Dow Jones crash of 1929, the NASDAQ slide in 2000 and the Oil tumble of 2008. The UBS analyst pointed to how a lot of the cryptocurrency’s proponents stated that Bitcoin is en route to a bull surge because ‘other assets did that in the past’. He laid the foundation for the delayed rise of Bitcoin by saying:

“We’re struck by how long it took other asset bubbles to recover their peak levels (as long as 22 years for the Dow Jones Industrials) and how pedestrian the annualized returns from trough to the recovery often are.”

Dennean was also of the opinion that not every bubble that bursts recovers its old highs, taking the example of the Nikkei crash, which after 30 years of its fall, has still not managed to reach its earlier peak, currently trading at around half its all-time highs. The Japanese asset price bubble was an inflated economic bubble in the late 80s where the real estate and the stock market prices were greatly volatile. In 1992, the price bubble burst and Japan’s economic machine came to a standstill.

Another figure used by Dennean was the fact that all the asset classes, including Bitcoin, fell by 75 percent with Bitcoin breaching the 80 percent barrier. After the crash, only the Dow Jones and the NASDAQ provided a reprieve to users after rising back to its earlier highs.

At the time of writing, Bitcoin was trading for $5292 with a market cap of $93.423 million. The 24-hour trading volume was clocked at $12.985.

Subscribe to AMBCrypto’s Newsletter

Continue Reading