Bitcoin is not having the best period in the cryptocurrency market as its value continues to nosedive, causing many BTC investors to lose significantly as their dollar holdings dissolve into thin air.
Since June 10, 2022, Bitcoin has seen its value drop from above $30,000 to below $23,000. Following the massive crash of the world’s largest cryptocurrency by market capitalisation, investors in the asset class are facing a market crisis.
As a result, top business intelligence company MicroStrategy and American electric car company Tesla have seen a large percentage of the Bitcoin value disappear, following the recent market collapse.
MicroStrategy’s Bitcoin Holding Value
MicroStrategy remains a major player in the massive adoption of Bitcoin in the corporate world. Since the company started accumulating Bitcoin in August 2020, the entjty has purchased a total of 129,218 BTC.
Furthermore, the aggregate amount MicroStrategy spent in accumulating the Bitcoin was around $3.96 billion. Unfortunately, the recent Bitcoin crash has caused MicroStrategy a loss of $1B.
According to Coindesk:
“Michael Saylor’s MicroStrategy (MSTR) is sitting on an unrealized loss of more than $1 billion on its bitcoin (BTC) holdings as the price of the largest crypto touches $22,900 in Monday trading.”
Tesla’s Bitcoin Holding
Tesla is deeply invested in both Dogecoin and Bitcoin, especially with the influence and support of ElonMusk.
In addition, Tesla holds a total of 42,902 Bitcoin, which was acquired at an aggregate sum of $1.32 billion.
However, Bitcoin’s crash also plunged Tesla BTC’s holding value to $1 billion, meaning that Elon Musk’s electric car company has lost a total of $320 million so far.
Despite the losses these corporate investors have incurred in recent times, they do not seem bothered, as it appears they are long term Bitcoin investors.
Related 👉Bitcoin Will Dip to $12,700: Expert Futures Trader Says
El Salvador’s Bitcoin Holding
El Salvador seem to also suffer loss from its Bitcoin investment. Following the country’s Bitcoin adoption as a legal tender, the country has purchased a total of $2,301 BTC.
The South American country purchased a unit of BTC for an aggregate price of $43,900, which implies that a total of 2,301 BTC was acquired at $101 million.
With Bitcoin crashing to $23,465, El Salvador’s Bitcoin holding is worth approximately $54 million, which implies that the country is down $56 million.
Inflation Driving Other Cryptocurrencies Into Decline
Bitcoin is not the only digital currency that is facing a negative development. Other cryptocurrency projects, including Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), and Ripple (XRP), are also feeling the effects of the rising inflation.
The cryptocurrency market reacted alongside other financial markets following reports of surging inflation in the United States.
With the Federal Reserve poised to mitigate rising inflation, cryptocurrency investors fear that more stringent measures will be implemented to make it a reality.
Bitcoin is currently trading around $22,414, down 11.7% in the last 24 hours, according to Coin Market Cap.
Read more👉Bitcoin hash rate reaches an all-time high as BTC price falls below $25,000
