Price of graphic cards fall significantly in China amid crypto mining crackdown...

Price of graphic cards fall significantly in China amid crypto mining crackdown

Price of graphic cards fall significantly in China amid crypto mining crackdown

June 22, 2021 2:53 pm

Price of graphic cards like Nvidia and Asus dropped significantly amid the ongoing crackdown on cryptocurrency mining in China.

Detail: The entry-level graphics card, the Nvidia Quadro P1000 dropped to around CNY2,400 on JD.com franchise store, it was selling for close to CNY3000 in early May, before the announcement of strict Bitcoin regulations. Similarly, Asus’s flagship RTX3060 card dropped to around CNY4600 from its peak price of CNY13,499 in May.

The price drop coincides with a major sell off on the cryptocurrency market, with Bitcoin price dropping to USD31,165 amid China’s recent crackdown on cryptocurrency mining.

This price drop is also a complete reversal from the situation in mid-April, when bitcoin price peaked amid coinbase listing, leading to a country-wide shortage of graphics cards. The crypto mining community has contributed to the high demand for graphics cards for a while now.

Context: The driving force behind China’s falling GPU prices is the authorities’ recent decision to ban financial institutions and payment services from supporting cryptocurrency.

On Monday, China’s central bank reiterated the country’s ban on cryptocurrency trading, ordering banks and payments institutions to halt service for accounts associated with crypto trading activity, freezing those clients’ accounts that are suspicious of involving in cryptocurrency transactions.

The latest announcement following a series of mining bans in several major crypto mining hubs in China including Inner Mongolia and Yunan, Qinghai.

Last week, Chinese authorities extended mining bans to Sichuan, where it is China’s second largest bitcoin mining province.

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