The tide is not to fish among the world’s top ten crypto billionaires. Since November, they have already accumulated losses of almost US$27 billion, mainly due to the sharp drops that have occurred with bitcoin since November 10, 2021, when the cryptocurrency reached the historic value of US$68,622. However, that high has given way to an unprecedented turnaround in the digital asset market, with a 50% drop in market value since then, according to data provider Coin Market Cap.
Generalized Tumble
Valued at US$38,000 this Wednesday (26), bitcoin is just the tip of the iceberg when analyzing so-called altcoins, alternative currencies.
Solana (SOL) and Ethereum (ETH) have accumulated drops of 52% and 42% in the last two months and 15 days. According to Coin Market Cap, among the nearly 500 largest digital assets in the world, there is already a 40% devaluation in just one week, as happened with HydeDAO (HDAO).
Added to this, the rise in interest rates and the value of oil, driven by inflation, has led countless investors to other sources of profits, mainly with lower risk of losses.
Since November 10, software company MicroStrategy has lost about 55% of its $3 billion invested in bitcoin, with the Nasdaq index down 15%. Michael Saylor, bitcoin investor and CEO of the company, has suffered a loss of 55% of his fortune.
If on November 10th the total market for all cryptocurrencies totaled almost US$3 trillion in investments, this Wednesday (26th) it did not reach US$1.7 trillion. This is a reduction of 43% in the period.
Fed Expected to Impact on New Declines
The scenario is viewed with pessimism by analysts for the next few days due to the more austere monetary policy that will be promoted by the Central Bank of the United States, the Federal Reserve (Fed).
Therefore, the losses can be accentuated, according to the analysis of several investors. This is because the growth in yields on US Treasuries also impacts the market, which makes investors move away from applications in cryptocurrencies and other types with high volatility, that is, greater risk of losses.
But there are those who are optimistic for 2022. An example is investor Tim Draper, who has already spent US$18.7 million on almost 30,000 bitcoins in 2014. He believes that the cryptocurrency will rise more than 600% throughout this year, reaching US$250 thousand, even with all the contrary factors.
See Who Lost the Most Money with Bitcoin
The list of billionaires who saw their investments collapse due to the constant drops in the value of bitcoin is extensive. We have selected six for you to have a dimension of the rhombus.
Sam Bankman-Fried
FTX Co-founder
Net worth as of November 11, 2021: $26.9 billion
Net worth as of January 24, 2022: $17 billion
Losses: -37%
Brian Armstrong
Coinbase Co-Founder and CEO
Net worth as of November 11, 2021: $13.5 billion
Net Worth as of January 24, 2022: $7.9 billion
Losses: -41%
Chris Larsen
Ripple Co-Founder and Chairman
Net worth as of November 11, 2021: $6.1 billion
Net Worth as of January 24, 2022: $3.8 billion
Losses: -38%
Cameron Winklevoss
Investor in bitcoin, ethereum and filecoin; co-founder of Gemini exchange
Net worth as of November 11, 2021: $5 billion
Net Worth as of January 24, 2022: $3.8 billion
Losses: -24%
Tyler Winklevoss
Investor in bitcoin, ethereum and filecoin; co-founder of Gemini exchange
Net worth as of November 11, 2021: $5 billion
Net Worth as of January 24, 2022: $3.8 billion
Losses: -24%
Fred Ehrsam
Coinbase and Paradigm Co-Founder
Net worth as of November 11, 2021: $4 billion
Net Worth as of January 24, 2022: $2.3 billion
Losses: -43%
Via: Forbes
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