The cryptocurrency market trembled, but Shenzhen's Huaqiangbei district appeared more energized than ever.
On May 20 at 2 PM, in a building densely packed with mining equipment, carts loaded with graphics cards and miners were hurriedly pushed into elevators by delivery personnel. Just 19 hours prior, the crypto world had experienced its "night of terror."
The Night the Crypto Market Collapsed
On May 19 at 7 PM, virtual currencies plummeted across the board. Bitcoin dropped from $34,000 to $31,000 in just 16 minutes, with a daily decline of nearly 30%. Ethereum fell below $2,000, losing over 40% of its value, while Dogecoin plunged below $0.30, down more than 40%.
Within 24 hours, 480,000 traders faced liquidations totaling $5.9 billion (¥38 billion). Some hopeful speculators joked about "buying the dip," while others anticipated a drop in graphics card prices.
"Absolutely not happening!"
At the mere mention of price reductions, Huaqiangbei’s graphics card vendors swiftly dismissed the idea.
"Right now, we can’t even secure enough stock. Pricing is volatile—it could go up any minute," one vendor stated firmly.
Huaqiangbei: The Global Hub for Mining Equipment
Over the past two years, Huaqiangbei has reclaimed its position as a powerhouse in the virtual currency mining industry. Retailers specializing in high-performance graphics cards have pivoted to mining operations, transforming the district into one of the world’s largest hubs for mining equipment sales.
Despite the crypto crash, prices for graphics cards in Huaqiangbei remained stable—even slightly increased.
"Stay calm, the market will rebound."
Vendors doubling as miners displayed remarkable composure. Bitcoin and Ethereum did recover temporarily, but volatility persisted. By May 21, Bitcoin had dipped below $40,000 again.
Yet, Huaqiangbei merchants remained unfazed.
"Graphics Card Prices Falling? No Chance."
Inside Huaqiangbei’s Seg Plaza, shops branded with "mining" buzz with activity. Testing, debugging, and shipping orders—vendors barely had time to entertain buyers.
The NVIDIA RTX 3080, often dubbed the "Hermès of graphics cards," saw prices surge to ¥16,000—a 300% markup over its retail price.
"Prices won’t drop. We can’t even restock at these rates," one vendor admitted.
A widely circulated price trend chart among vendors showed that even older models like the RTX 2060 had doubled in value over the past year.
The Unshaken Faith in Cryptocurrency
Within 30 hours, Bitcoin rebounded from $30,000 to $40,000. Though short-lived, miners remained steadfast.
"Mining isn’t speculation—it’s a long game."
Many Huaqiangbei vendors wear multiple hats: they sell mining rigs while mining cryptocurrencies themselves.
"Prices will recover," one miner-vendor predicted. "Demand for hardware isn’t going anywhere."
Despite the 2018 crypto winter and recent crashes, Huaqiangbei’s faith in virtual currencies remains unshaken.
"You Need Millions Just to Open Shop Here"
Huaqiangbei, known as China’s "Electronics First Street," is the epicenter of global mining hardware distribution. Reports estimate that 90% of the world’s mining equipment flows through this district.
With the 2021 crypto boom, demand skyrocketed—even laptops were repurposed for mining.
But success here requires more than luck—it demands strategic foresight.
"Stock the right model, and profits double overnight."
An IC (integrated circuit) vendor explained how specialized mining chips became lucrative during the pandemic-induced shortage.
"Components that cost ¥100 surged past ¥1,000 in months. A year’s earnings could cover a down payment on a house."
Multiple vendors revealed that in 2024, Huaqiangbei’s IC traders averaged over ¥1 million in profits—a trend continuing into 2025.
"This year, if you haven’t made at least a million, you’re not even in the conversation."
For Huaqiangbei’s merchants, the goal isn’t just buying property—it’s acquiring more storage space to hoard the next big-ticket item.
"Earn more → stock more → buy more warehouses."
As one vendor put it: "Our business model is simple: sell stock, hoard stock, sell again. Rinse and repeat."
Despite the crypto crash, Huaqiangbei’s veterans remain calm. Their faith in the market’s resilience keeps them mining—and profiting—through every storm.
FAQ Section
1. Why haven’t graphics card prices dropped after the Bitcoin crash?
Demand for mining hardware remains high due to sustained interest in altcoins like Ethereum. Shortages keep prices elevated.
2. How much do Huaqiangbei merchants earn from mining hardware?
In 2024, top vendors reportedly cleared over ¥1 million in profits—with some earning enough for property investments.
3. Will cryptocurrency mining remain profitable?
Miners believe so. Unlike traders, they accumulate coins over time, waiting for optimal selling points rather than reacting to short-term volatility.
👉 Discover how crypto miners maximize profits
4. What’s the most sought-after mining equipment in Huaqiangbei?
NVIDIA’s RTX 3080 remains in extreme demand, selling at nearly 3x its retail price due to its high hash rate.
5. How has Huaqiangbei adapted to crypto market swings?
Vendors diversify roles—selling hardware while mining themselves—to hedge against volatility.
👉 Learn why Huaqiangbei dominates the mining hardware market
Note: All vendor names have been changed for privacy.