Collectively, the three Bitcoin whales added up to losses (on paper) of a few hundred million dollars in their portfolios as a result of the recent plunge in the market.
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While this Friday the markets seem to be recovering, earlier this week, investors experienced panic when major cryptocurrencies saw a massive drop. With Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. Sinking below USD $30,000 and the other currencies falling behind, many investors began to record losses; and the big whales were no exception.
Bitcoin (BTC), the leading digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset by market an area or arena, online or offline, in which commercial dealings are conducted. capitalization, fell to lows not seen since 2020, when it slid on Thursday to a price as low as $26,350 according to data from CoinMarketCap . The drop, which came amid a widespread collapse in the global digital currency currency is a medium of exchange that defines value. market, translates into a 60% correction a correction is a pullback of an asset’s price of at least 10% to adjust for over-valuation. from its all-time high of USD $68,000, recorded in November 2021.
Counting losses
Few seemed to be spared from this week’s bloodbath. Investors who bought Bitcoin around the time of last year’s bull a person that is optimistic and confident that market prices will increase, this person is also known to be "bullish" about the market or price. run, have seen their gains gains refer to an increase in value or profit. erased since then. Especially this 2022, a period that, to date, has been characterized by high volatility.
But even those who bought the asset before its rally towards the end of 2020 could now face a portfolio a collection of cryptocurrencies or crypto assets held by an investment company, hedge fund, financial institution or individual. in the red. The bets of some of the market’s leading investors are counted here, such as. MicroStrategy the largest institutional whale a term used to describe investors who have uncommonly large amounts of crypto, especially those with enough funds to manipulate the market. in Bitcoin, and El Salvador, the first country in the world to have reserves in a cryptocurrency.
El Salvador
The Central American country, which last year became the first nation in the world to adopt the Bitcoin as legal tender, has been accumulating a fortune from the cryptocurrency. The strategy, led by the Salvadoran president, Nayib Bukele, has consisted of both the direct purchase of Bitcoin as well as in its acquisition through mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. activity.
According to data compiled by Bloomberg based on the publications of Twitter under Bukele, El Salvador currently maintains 2,301 bitcoins in its reserves. The nation began acquiring the flagship cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. shortly after its recognition as a legal currency in September at a price slightly above USD $51,000 a unit.
The most recent investmentse anunció a inicios de esta semana, por una cantidad de 500 BTC at a price of USD $30,744 per coin. Following the figures of Bloomberg if El Salvador has purchased every Bitcoin at an average price of 47,577 per unit, then the total national investment fell by nearly 40%. with an estimated loss of $43 million, when the flagship cryptocurrency traded at USD $28,500.
MicroStrategy
MicroStrategy a company of software business, began to buy Bitcoin en agosto de 2020 como parte de una estrategia para reducir sus tenencias de efectivo y hacer frente al escenario de inflación fiduciaria provocado por la pandemia de COVID-19. La firma ha continuado adquiriendo bitcoins at a steady pace, making a fortune of 129,218 BTC.
The company and its subsidiaries have bought Bitcoin at an average price of USD$30,700, according to data provided by The Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. . With Bitcoin at a price of $28,500 the reversal of MicroStrategy resulted in a pérdida en papel cercana a los USD $ 280 millones .
The firm’s CEO, Michael Saylor, has shown himself to be a great enthusiast and advocate for Bitcoin . In the past, he has praised the cryptocurrency for its deflationary nature, claiming that it provides a better safe haven than gold. He has also made bullish forward projections of up to $1 million. Saylor doesn’t seem worried about potential losses on his cryptocurrency investment. Earlier this week, the businessman reiterated that MicroStrategy will not sell its bitcoins even if the asset drops to USD $3,000.
Tesla
Investment in Bitcoin from the electric car company led by billionaire Elon Musk is another one that has stopped delivering this week. Tesla announced for the first time in February 2021 that it would had acquired USD $1.5 billion of Bitcoin . The purchase was made between January and the beginning of February, according to a document filed with the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission (SEC).
During this period, the price of Bitcoin ranged from USD $29,000 to USD $42,000, according to data from Coinmarketcap . On average, we would estimate that Tesla bought its coins somewhere in between, within the mid-$35,5000 range. While the company indicated that it had sold about 10% of its hoard in the cryptocurrency, by the end of 2021, amid the uptrend, the investment had paid off. The company then said its BTC holdings were estimated at USD $2 billion.
Although there is no exact information about the amount of bitcoins in the hands of Tesla Based on these figures -and a price of Bitcoin estimated at USD $28,500 – suggests that Tesla podría haber registrado una pérdida de alrededor de 20%which possibly translates into a few hundred million dollars.
It wouldn’t be the first time the institutions have lost money on Bitcoin . At the beginning of the year, Tesla revealed that had lost about $101 million by 2021 The figures presented in this article are approximate estimates. It should be noted that the figures presented in this article are estimates. None of the entities mentioned have provided precise data on the current status of their investments in BTC.
- Tether disengages and Bitcoin drops below USD $29,000 amid market plunge
- Bukele shows mock-ups of what El Salvador’s Bitcoin City will look like (with pictures)
- Michael Saylor, CEO of Microstrategy says Bitcoin storage strategy has been a success, denies having sold out
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash
