Bitcoin reaches a three-month high

Stocks of Taiwanese PC component manufacturers are being weighed down by cryptocurrency concerns:

Bitcoin reaches a three-month high; other major cryptocurrencies also rise. The share prices of key PC component makers have plummeted because of Ethereum’s shift to proof-of-stake and a drop in graphics card cost.

Prices:

On Sunday, there was a Bitcoin spring in the air. The largest cryptocurrency by market value surged beyond $46,800 at one point, surging over 4% in two hours to a three-month high. Bitcoin has risen over 12% since last Sunday, following six straight days of gains, although it is still much behind its $47,200 starting point in 2022.Ether and most of the other big cryptos were also thriving.

On Sunday, the second largest cryptocurrency by market size followed a similar trajectory to bitcoin and was trading at more than $3,270, its highest level since early February. Solana, Cardano, and Avalanche, amongst other cryptocurrencies, were all trading in the green. Dogecoin and Shiba Inu, two popular meme currencies, were up roughly 6% and 3.4 percent, respectively.

After several weeks of low volumes, trading was picking up. “Trading volumes are increasing as buyers attempt to convert this resistance line into support and take more price increases.” Joe DiPasquale, CEO of BitBull Capita, is a fund manager told CoinDesk, adding, “If we don’t stay above this level, we will merge lower than here.”

DiPasquale stated Bitcoin had “a strong week, especially given the quarterly options expiry” on Friday, and that Bitcoin had “shown resilience” in the aftermath of the Federal Reserve’s decision to raise interest rates last week and the continued escalation of Russia’s invasion of Ukraine with its economic fallout.He was, however, cautious in his assessment of the next days.”BTC bulls will like to see the price merge over $46,000 for further continuation while market participants are turning optimistic and the fear and greed index is at neutral,” he added.” “The approaching week is especially significant since it represents the conclusion of the quarter, and we may see higher volatility.”

 Markets Insights:

Taiwan’s PC component manufacturers are still lucrative, but cryptocurrency fears are dragging on their equities. With Ethereum’s shift away from proof-of-work and toward proof-of-stake, miners no longer require all the graphics cards they’ve amassed over the previous few years. Shares of Taiwan-based component companies Asus, Gigabyte, and MSI, who build graphics cards, are down year to date the market pricing in slackening demand for their graphics cards.

Preliminary data suggests a large decline in graphics card cost as Ethereum’s shift to proof-of-stake approaches, with some prices plummeting by over 50%. Used GPUs are turning up by the crate load in China’s electronics markets, but new ones aren’t moving as quickly as they used to, resulting in an overstock of inventory.

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Author: Avery Owens