Bitcoin volatility rocks China’s graphics card market

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Bitcoin volatility rocks China's graphics card market, pushing vendors to demand same-day purchases of dwindling supply

Volatile bitcoin prices are wreaking havoc on the prices of graphics cards in Huaqiangbei, the world’s largest electronics market located in Shenzhen, preventing buyers from making advanced purchases.

“Tell me the price you’re thinking of and I will see if I can sell the cards to you,” he said. “I have hundreds of inquiries from other buyers who are ready to make a deal now.” GPU prices online have also surged to multiple times their suggested retail value. Nvidia, for example, lists the prices of its GeForce RTX 3070 and 3080 as 3,899 yuan and 5,499 yuan , respectively. The cards are sold out from Nvidia, however, and vendors on Taobao, owned byparent company Alibaba Group Holding, are selling them for nearly twice as much.

The price of bitcoin surged to an all-time high of more than US$57,000 on Feb 21, boosted by support for cryptocurrencies from large companies such as Tesla and Mastercard. Since its peak, bitcoin lost about 20% of its value before creeping back up to around US$50,000 at the beginning of March. Other cryptocurrencies, including ethereum, have followed similar trajectories.

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