Bitcoin continues creeping higher despite Chinese headline

ROCHE

·         Bitcoin (BITCOIN on xStation5) continues climbing at the beginning of the new week despite a downbeat headline coming from China

·         Spanish central bank warns about digital currencies and risks which they carry 

·         Nvidia’s GPU products keep seeing strong demand from crypto miners

 

Bitcoin has begun the new week with a moderate gain despite quite downbeat revelations from China, however, no details have been revealed as of yet. What are we writing about? As everybody knows China accounts for a lion’s share of cryptocurrency trading therefore each news coming from there might contribute to larger moves in the Bitcoin price and other virtual currencies alike. According to the Chinese People’s Daily it’s necessary for the country to cool down Bitcoin investments. There have been no details at this stage so Bitcoin traders seem to play down those reports as they’ve even accelerated their purchases following the story published via Bloomberg. Either way, if the Chinese watchdog comes out with more detailed plans or steps the Bitcoin price action could become more hectic so take it into account before trading.

 

Technically, Bitcoin appears to has found a support at around $7600, thus a pick-up toward the closest supply zone could be on the cards. Should bears break it durably, it could pave the way for further rises.

 

Spanish government warns about cryptocurrency-related risks

 

The Spain’s central bank has issued recently a public release focused on the risks related to cryptocurrencies highlighting that no regulatory institution in the country has approved or registered either a virtual currency of an ICO. What’s more, the bank stressed that crypto issuers, exchanges and digital wallet providers will have to be fully AML (ant-money laundering) compliant having to identify their customers. The steps taken by the Spanish central bank seem to be understandable after the cryptocurrency hype seen at the end of the past year. Moreover, those measures seem to be in accordance with a broader attitude shared by the European Central Bank.

 

Cryptocurrency miners keep purchasing graphic cards produced by Nvidia

 

Along with rising interest of cryptocurrency mining some producers of graphic cards have already witnessed an amazing surge in demand for their hardware. Nvidia has been among them as the company has decisively benefited from the higher Bitcoin price and larger demand for GPUs resulting from it. The company reported $2.91 billion in revenue during the last quarter of 2017 illustrating a stunning 34% improvement compared to the same period a year earlier. Do notice that GPU-related revenue had the largest contribution to growth. According to Colette Kress, the company’s CFO: "While the contribution of cryptocurrency mining to our business is hard to quantify, it is likely to have been higher than in previous years. However, we remain committed to our gaming demands as cryptocurrency trends are likely to remain volatile."

Nvidia saw a huge increase in GPU-related revenue during the Q4 of 2017