Crypto Mining's GPU producer Nvidia becomes the worst S & P 500 Performer due to the bear market

The GPU manufacturer Nvidia becomes the worst producer of S & P 500 in the bear market

The cryptocurrency bear market has hit several companies and virtual currencies in space. Many initial coin offerings (ICOs) that have raised several million dollars have not been able to launch a functioning product on the market. But even the encrypted mining industry has been hit by this bear trend.

Extraction of cryptocurrencies It has become a very interesting activity for people and companies who were looking to get extra income. During the upward run experienced in 2017, mining activities were very interesting. Virtual currencies were reaching their all-time highs and the network's difficulty in many of these major virtual currencies enabled companies to obtain attractive income from mining activities.

Among the companies benefiting from this bull market, we have found those that produce GPU devices like Nvidia and AMD. They were almost always selling a single GPU device and had recorded interesting profits. However, the bear market has hit them severely.

During the last quarter of the current year, Nvidia experienced a massive sale of his shares. In fact, he became the worst interpreter of the S & P 500, second to CNBC. Starting in 2016, Nvidia's market value increased from $ 14 billion to $ 175 billion, representing an increase of 1150% in just a few years.

Already in May, the company was able to report the profits it had from mining encryption activities. However, they forecast a two-thirds sales decline in the second quarter. During the last quarter, the sales for mining activities completely fallen to almost nothing. Jensen Huang, the CEO of Nvidia, said these results show that there was an inventory of excess channels after the boom in cryptography.

It seems that GPU card prices have grown exponentially during the bull market experienced by virtual currencies. However, once the market crashes, the GPU has not reduced the price as quickly as required for individuals to continue buying them Miners of the GPU.

According to the PHLX Semiconductor index, the monitoring of the major hardware manufacturers on the market shows that they have lost about 20% in the last three months. Nvidia has already lost almost 50% in the last three months.

It is also possible to see it Bitcoin hash rate even in recent months it has dropped considerably, close to 50%. This shows that The price of Bitcoin the fall did not allow miners to cover their costs, forcing them to close their operations and enter later. After this fall Bitcoin hash rateeven the network difficulty has been reduced allowing miners to return to space.