Cryptocurrencies, namely Bitcoin and Ethereum, have fallen to lows not seen since July 2021.
As regards Ethereum, the price fell to a low of $2 176.41 while Bitcoin fell to a low of $32 982.11. Thankfully, Bitcoin recovered and saw its price climb to $37 183.25.
The reasons for these drops are numerous. As CNBC reports, cryptocurrency has seemingly been moving in tandem with stocks which have fallen since the start of the year. The drops in cryptocurrency could likely be a reaction to selling off high-risk assets in general.
Some analysts believe that the price of Bitcoin could fall lower still to figures as low as $15 000.
“A 78% decline from the bitcoin high of nearly $69 000 would imply a potential downside figure of about $15 000,” analyst at 22V Research, John Roque, told CNBC.
We also can’t ignore both Spain and the UK wanting to crackdown on misleading cryptocurrency advertising.
Good news for GPU buyers
While the dips we’re seeing are rather recent, there may be good news for GPU buyers on the horizon.
Data tracked by Tom’s Hardware shows that GPU prices are falling across the board. On average card prices have dropped by five percent. Unfortunately supply issues are still compounding the problems faced by PC builders so we’re not out of woods yet.
However, given the drops in cryptocurrency prices, we suspect that the value presented by mining may no longer be viable for many small scale miners.
It’s also worth noting that Tom’s Hardware’s data only looks at pricing on eBay and specifically in the US. It remains to be seen then whether this trend extends to other parts of the world. Here in South Africa we’re not expecting monumental shifts but it might be a good idea to hold out if you’re thinking of buying a GPU just to see what the market does.
Also if you’re considering investing in cryptocurrency we recommend never investing more than you can afford to lose. While the prices dropping might be a tempting prospect for investing at a relatively low price, we highly recommend doing your due diligence.
[Image – CC 0 Pixabay]
