Nvidia abnoicned absolutely dismal sales related to crypto chip sales today after market close. This is another sign to me that the bear market is not reversing any time soon. Bitcoin is in a sustained decline, and I view the culprit as the stupidity and hype that sent it to $19,000 in the first place. It was unsustainable and it has now very much poisoned mentality as crypto continues to fail to prove a suitable replacement to digital fiat and traditional centralized payment processors.
Specifics on Nvidia's release:
Last quarter, they posted $289m in crypto-related alchip sales, which is really a small percentage of their overall revenue. Despite that, they projected sales of only $100m this quarter, which at the time they made the prediction sent their shares down (despite it representing such a small portion of revenue). Today, they reported only $18m in crypto-related chip sales. Shares are now getting whacked in after-hours trading, which frankly messes no sense because they beat expectations on over all revenue and profit. Just shows that the idiotic crypto mentality has creeped into traditional investing.
I think you nailed it! This period feels like one of self correction. I personally think that the $19,000 mark was highly inflated. This was before the worlds governments started issuing heavy regulatory policies regarding crypto. The SEC had put their engine into high gear this year also.
The more the regulators issue their statements, the more I think the price will self correct, especially with the potential of an ETF approval before the end of the year.