Friday’s recovery isn’t enough to make up for the millionaires’ losses, who threatened the market collapse last week
More than $200,000 million in losses in just 24 hours following the panic over the death of Terra Luna, one of the best-known stablecoins, cryptocurrencies that intend to keep their price stable against a reference asset. A value that has halved from the highs of just six months ago. Investors in crypto assets are beginning to assume the correlation this type of product has with the stock markets and thus with the flight of risk that has conditioned the market today. “Between inflation and geopolitical tensions, the macro picture couldn’t be worse for risky assets,” said Alejandro Zala, head of Spain’s Bitpanda firm.
It is true that virtual currencies have regained much of the ground lost in the previous session this Friday. Specifically, approximately $170,000 million with an average revaluation of 15% for this market as a whole. But neither bitcoin manages to consolidate the $30,000 mark, nor is that recovery enough to allay the doubts that hang over this market that many retailers entered last year, emboldened by the expectation of juicy returns that have translated into losses these days. .
Large investors and companies are not spared either. Without going further, the $1,500 million Tesla invested in bitcoin more than a year ago is worth about $200 million less today, data from the Bitcoin Treasuries platform shows.
Video game giant Nexon also opted for an investment of 100 million, but it is now barely above 50. And despite this Friday’s rebound, bitcoin is still losing more than 20% in the past seven days. And it’s been six weeks in a row with a bearish close. “This is the first time in eight years that a trend like this has been recorded,” Zala warns.
This expert points out that the value of the cryptocurrency market has fallen by 60% from its peak in November 2021, when the capitalization was about $2.7 trillion. Now it is no more than 1.5 billion. In other words, the value equivalent to the Spanish economy, expressed in GDP, has disappeared.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
