Previously ‘unprecedented profit’, Bitcoin investors are bitterly swallowing and suffering a loss of $ 750 million / day

Tram Ho

According to CoinDesk, Bitcoin has lost 8.7% of its value this year, and Ether is also down 14%. Listed crypto companies are also affected, with Coinbase shares down 12% year-to-date, Marathon Digital Holdings down 21%, and Riot Blockchain also down 16%.

Meanwhile, shares of MicroStrategy – a company that makes business software but has invested billions of dollars in Bitcoin and whose CEO Michael Saylor is also very supportive of this currency, lost 16%.

Trước đây lãi chưa từng thấy, nhà đầu tư Bitcoin đang ngậm đắng nuốt ngay chịu lỗ 750 triệu đô/ngày - Ảnh 1.

Stocks of crypto-related companies have all fallen since Bitcoin peaked.

One of the most affected “victims” when the cryptocurrency market sold off was the Grayscale Bitcoin Trust (GBTC). The $27 billion Bitcoin hedge fund is down nearly 17% year-to-date, worse than Bitcoin’s nearly 9% drop. Accordingly, at the close of the January 19 session, GBTC was 26.5% lower than the value of Bitcoin held by the fund – also known as the discount rate, reaching an all-time high.

GBTC has been encountering “resistance” for the past several months. This trust does not allow investors to buy back shares like an ETF does, meaning supply is not created and declines as demand changes. As a result, the value of the fund fell further as investors fled the cryptocurrency, further deepening the plunge.

According to data from Glassnode, the real loss of investors holding Bitcoin is still increasing and trending higher. On average, Bitcoin investors lose about $750 million a day, similar to when the coin hit its lows in May-July 2021.

On January 19, Bitcoin rose 1.7% to $42,407. Most observers consider $40,000 to be an important threshold for the “bulls” and they predict Bitcoin reaching this range will see significant turbulence in trading. “Bitcoin’s price action remains potentially volatile as the Fed takes a more hawkish move,” said AvaTrade analyst Naeem Aslam.

Over the past 2 years, Bitcoin has recorded impressive momentum and the entire cryptocurrency market has mostly been in this trend. Traditional investors also participate in the cryptocurrency market. While many proponents call this “institutional cash flow” going on for years, the rally ultimately turned out to be a double-edged sword.

The growing sentiment in traditional and crypto markets could affect other markets, IMF analysts said. A sharp drop in the price of Bitcoin could increase investor risk aversion and lead to a reduction in investment in the stock market, they said.

In the first 2 weeks of the new year, the cryptocurrency market also declined in parallel with the US stock market. Both are struggling in the same situation: investors sell off risk assets as the Fed plans to tighten monetary policy later this year. Bitcoin’s trend this year is roughly similar to that of the Nasdaq Composite – currently 7.3% lower than it was in the same period last year.

Since capitalization hit $2.97 trillion in November, the entire cryptocurrency market value has dropped 34% to $1.97 trillion, according to CoinMarketCap.

Trước đây lãi chưa từng thấy, nhà đầu tư Bitcoin đang ngậm đắng nuốt ngay chịu lỗ 750 triệu đô/ngày - Ảnh 2.

The performance of Nasdaq Composite and Bitcoin from the beginning of the year to now.

One sign that the cryptocurrency market is in the doldrums is that investors are not interested in an announcement that was once considered very reliable: Elon Musk recently announced that some Tesla products could be sold. buy with Dogecoin. Dogecoin rallied around 10% in the 2 minutes following Musk’s tweet but the afternoon was back to previous levels.

Overall, strong sell-offs are still a feature of the crypto market. Bitcoin is down about 39% from the peak of $68,990 reached on November 10. This drop could cause the stock market to crash, but for Bitcoin this is still not the largest number in the past 12 months. From April to July last year, the price of the coin fell by 52%.

However, cryptocurrencies still fall into a “bear” market. Despite this trend, the group of bulls still thinks that the cryptocurrency market is ready for a change. Lucas Outumuro, head of research at IntoTheBlock, said: “The combination of hope and suffering is leaving the crypto market divided on what might happen next.”

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Source : Genk