Bitcoin market sees huge volume of transactions, mining hardware vendors' revenue soars

In light of the tightening regulation, some industry insiders are still cautious about cryptocurrencies. However, according to recent news, capital giants such as George Soros and the Rockefeller family have begun to enter the market, and some analysts even predict that the price of Bitcoin may still double within this year. Although the price outlook is still unknown, the continuous influx of Bitcoin "miners" has earned relevant hardware suppliers considerable income.

According to the price platform CoinDesk, at 13:00 Beijing time on the 15th, the price of Bitcoin was $8,103.16, an increase of 1.24%, and a 17.5% increase from the closing price last Saturday. On the 12th alone, the price of Bitcoin soared by about $1,000, and the trading volume also increased sharply. Foreign media quoted data monitored by industry organizations and reported that the trading volume in a certain hour was even close to $1.2 billion, setting a new record.

This lively scene is in contrast to the decline at the beginning of the year. In the first quarter of this year, the price of Bitcoin fell 50.03% compared with the level at the end of last year.

Industry insiders believe that the increasingly stringent regulatory environment has led to the decline of Bitcoin in the previous stage, and tax sales are also one of the reasons for the decline in Bitcoin prices. Since the U.S. Internal Revenue Service regards cryptocurrency as an asset, investors who have traded Bitcoin in the past year need to pay taxes.

According to Tom Lee, managing partner of Fundstrat Global Advisors, American households may need to pay $25 billion in capital gains taxes due to their cryptocurrency holdings. As a result, some investors sold their cryptocurrency assets before the mid-April reporting deadline.

However, this may be coming to an end. He predicts that the price of Bitcoin will soar to $25,000 by the end of the year. To reach this price, Bitcoin needs to rise by more than 200% from its current level.

Seth Weiner, managing partner of venture capital firm University Capital Group, is also in this camp. He said that the price of Bitcoin will reach $25,000 sometime before Christmas this year. The reason that prompted him to make this judgment is that Wall Street has regained interest in cryptocurrencies, and the participation of Soros and others is a huge positive factor.

Foreign media recently revealed that Soros's hedge fund is planning to trade cryptocurrencies. After that, the top venture capital firm Venrock, which is run by the Rockefeller family, announced that it would form a partnership with the digital currency investment team CoinFund. As early as last year, the Rothschild family, which also has strong capital strength, had participated in the cryptocurrency market through the Bitcoin investment trust.

However, billionaire Buffett and JPMorgan Chase CEO James Dimon have previously stated publicly that they will not invest in cryptocurrencies.

While the industry remains divided over the topic, one group of people is already profiting. The growing number of people seeking to mine cryptocurrencies has led to a sharp rise in demand for GPUs, the heart of personal computer graphics cards, and has helped the leading suppliers make a killing.

According to professional gaming website Polygon, the suggested retail price of Nvidia's GeForce GTX1070 graphics card is $380, but it is currently selling for more than $700.

According to Gartner, an analysis firm, revenue from GPUs used in data centers will surge from $168 million in 2015 to $1.1 billion in 2018. Overall GPU sales revenue is expected to grow from $3.82 billion in 2015 to $6.45 billion this year.