GPU prices have dropped with the crypto crash

Due to the global computer chip shortage, GPU prices have soared drastically. However, they now seem to have dropped coinciding with the crypto crash.

Despite the current prevalence of cryptocurrency mining , the price of many key players has been slowly dropping since November 2021. A market crash beginning on Friday (January 21), saw many popular online currencies, including Bitcoin and Ethereum, dropsuddenly to around 50 per cent of their highest market value (according to CNBC.) This added up to total losses of $130billion (£96billion) from the market.

The recent boom in the crypto market is in no small way responsible for the current computer chip shortage, as miners purchase large amounts of graphics cards for crypto mining. CEO of AMD, one of the world’s largest producers of computer hardware, Lisa Su, predicted that the chip shortage would last until the end of 2022.

While measures have been put in place such as building new factories and increasing production, she believed that chips would still likely be “tight” through the beginning of the year. She also agreed that crypto mining had been a large factor in the shortage.

The steady drop in crypto prices has had a knock on effect to the GPU market. It has been interpreted by some as a lowering in interest in the online currency market, and as such the price of graphics cards used in the mining process have also dropped.

This includes many sought after high-end Nvidia graphics cards, which have dropped by up to 11per cent on eBay compared to their prices last month. The chip shortage is also one of the reasons why it has been difficult for consumers to purchase PlayStation 5s.

In related news, Nvidia is looking at exit strategies for its £30billion deal to buy microprocessor designer Arm, after regulators have hampered progress. The company stands to lose £2.4billion in deposits and cancellation policies if the deal is abandoned.