Slumping Cryptocurrency Market Could Hugely Affect GPU Prices in July
The slumping cryptocurrency market could cause graphics card prices to fall again this month, DigiTimes reported.
After what seemed like an eternity of having to endure ridiculous prices, GPU costs are finally returning to normal levels. According to a new report, this month should see another reduction on graphics cards from Nvidia and AMD, with an average drop of around 20 percent.
We know that crypto mining was the primary reason behind the incredibly high GPU prices. Following the sudden boom in Bitcoin price in late 2017, the demand for GPUs reached its peak as cryptocurrency miners gave a hot chase for the cards. This caused a shortage of RAM and the resulting price inflation as several GPU providers struggled to keep up with the demands.
However, with crypto markets slumping in recent months, failing to come anywhere near their mid-December peak, many farms have cut their GPU orders or stopped operations entirely, leading to a fall in card prices. The effect became apparent in May when a variety of GeForce GPUs arrived back in stock at near MSRP levels.
Taiwan site DigiTimes noted that this trend is going to continue throughout July. With Bitcoin price nearing the production costs for mining 1 BTC, several bitcoin miners are pulling out from the business.
While there are still many people mining cryptos, many uses dedicated ASICs, but demand for these has also waned. This means that suppliers have to slash prices in order to try and clear inventory. DigiTimes reports that this “mining chill” will lead to a GPU price reduction of “around 20 percent in July.”
Last month, a source claimed that Nvidia overestimated recent demand for its GPUs, thereby generating an excess inventory. It’s thought that the company is holding back its new GeForce cards until the stock is cleared. This poise the question: If users will actually purchase a Pascal-based GPU now, or wait until the next-gen cards arrive?