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Nvidia shares drop in price due to the collapse of the cryptocurrency market

The fourth quarter of 2018 brought another blow to Nvidia in terms of market capitalization. The company’s stock price over a short period of time fell by 54%, which was the worst in the S&P 500.

Nvidia is one of the largest manufacturers of graphics cards. The outgoing year was difficult for the company, and this is largely due to the uncertainty in the cryptocurrency market.

Capitalization dynamics of Nvidia: 100% dependence on the market

In 2016-2017, when the cryptocurrency market has been on the rise, and the demand for graphics cards from the miners was crazy, positive dynamics was observed and Nvidia. 2016 and September 2018, the company’s capitalization grew by 1150%, from $14 billion to $175 billion, and by the time of this writing, slipped to $84 billion.

Interestingly, one can notice the correlation between the growth Hasrat network of bitcoin with a market capitalization of Nvidia: from January to August this year, Hasrat BTC rose from 19 million TH/s to 61 million TH/s, and then declined by 50% due to the depreciation of the currency.

The future of the company

Despite the fact that successful mining bitcoin ASIC of the desired device, Ethereum (ETH) and the zcash for (ZEC) continued to mine using graphics cards. If the crypto market will go up, for instance, could be followed by Nvidia. Ironic that the management of the company called cryptocurrency direction “minor” that was not quite relevant to the truth.

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