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Cryptos Tumble as Chipmaker Forecasts Weaker Demand for Mining Equipment

Published 10/19/2018, 07:42 AM
Updated 10/19/2018, 07:42 AM
© Reuters.  Cryptos were lower on Friday.

Investing.com - Cryptocurrencies were lower on Friday chip-making giant Taiwan Semiconductor Manufacturing Company (TSMC) forecast weak demand for processors for mining in the fourth quarter

Bitcoin was down 1.67% to $6,558.40 on the Bitfinex exchange, as of 7:41 AM ET (11:41 GMT).

Cryptocurrencies overall were lower, with the total coin market capitalization at $207 billion at the time of writing compared to $210 billion on Thursday.

Ethereum,or Ether, decreased 2.36% to $206.55 and Litecoin was flat $52.240, while XRP slumped 3.43% to $0.46125.

TSMC, the primary supplier for crypto mining giant Bitmain, said its revenue growth will slow due to "continued weakness" in the crypto mining market.The company lowered its annual revenue growth forecast for 2018.

According to Bitmain's initial public offering application, nearly 60% of its total chip supply came from TSMC in 2017 and the first half of 2018, Coindesk reported.

Tariffs between the U.S. and China could also impact the operations of other Chinese mining manufacturers, as imports of mining hardware face tariffs of 25%. The trade tariffs could have a negative impact on the planned IPO's of Chinese manufacturers Canaan Creative and Ebang International in Hong Kong.

In other news, Elvira Nabiullina, the head of the Central Bank of the Russian Federation, said markets’ excitement toward virtual coins have begun to fade.

“Back in old times, technologies like blockchain caused a great deal of enthusiasm, but, in our opinion, now a more sober attitude towards such technologies has begun,” she said at the FINOPOLIS innovative financial technology forum on Thursday.

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