The plunging of the price of bitcoin was a matter of great concern to most of the investors. They had earlier learnt about the fact that the stocks of both Nvidia Corp and Micro Devices Inc were on the decline. However, such concerns might soon be ruled out if everything goes according to plan.
A person familiar with the most recent developments outlined that the decline might have had much to do with an emotional association and that was contrary to the mindsets of many who were attributing it to the change of either the businesses or companies.
Chips manufactured by both Nvidia Corp and Micro Devices Inc are quite useful when it gets to the mining of bitcoin. It goes without saying that 2017 has witnessed bitcoin’s massive rise which has set the trend for the mining of cryptocurrency.
At the start of the year, Bitcoin traded at about $1,000 and went further to a high of over $19,000 and that was on December. The passage of time is presenting a different reality to the field considering that the cryptocurrency has gone down to almost 30 percent.
A market analyst familiar with the recent developments opined, “What seems interesting about today’s sell-off especially in AMD, is that the stock has not benefited in 2017 from bitcoin’s advance. Shares of AMD are down by over 8 percent in 2017, so despite the fact that AMD chips are used for mining bitcoin, and revenue has resulted from bitcoin, the market has not been rewarding shares of AMD in 2017.”
One notable thing is that AMD has for quite some time been rather cautious in line with the various cryptocurrency trends. During its third-quarter conference call, the company outlined that through its close analysis it has noticed a leveling-off for cryptocurrency demand.
What left many shocked was the fact that the market did not in any way reward AMD for the rise of bitcoin in 2017 and that was something that had pretty much to do with the fact that the market had been lowering its expectations in line with a possible positive impact Advanced Micro might be witnessing from the cryptocurrency boom.