As Bitcoin prices continue to crash, it is not just retail investors who have lost big money but also sovereign governments and listed entities. Around 10 globally public listed companies and three governments including Ukraine, El Salvador and Georgia holding Bitcoins stand to lose over $2.56 billion, according to data from crypto research firm CREBACO Global.
The biggest losers were MicroStrategy Inc and Elon Musk’s Tesla, which lost $766.17 million and $309.88 million, respectively, as of June 13. Among governments, Ukraine alone lost $1.25 billion when Bitcoin crashed below $25,000, plummeting by over 14.86 per cent. The crypto token value fell from its peak of $28,189 to $24,000 on Monday. Consequently, the global crypto market cap was less than $1 trillion, the lowest in a year, as per data from Coinmarketcap.com.
Interestingly, Sidharth Sogani, Founder and CEO, CREBACO Global, believes that Bitcoin is in fact doing what it is designed to do in terms of creating value.
“Fundamentally, Bitcoin is at an all-time high. Transaction fee is at an all-time low which is less than $1.5 per transaction. The hash rate is at an all time high at 275 million tera hash. The number of wallets which hold 0.1-1 BTC is again at an all-time high. The number of transactions everyday have not fallen, they are going sideways,” he told BusinessLine. Hash rate is the computational power being used by a cryptocurrency network when doing transactions. Higher the hash rate, it indicates more miners are verifying transactions.
According to him, the price action is going downwards because of the global cues, CPI numbers and recession-like situation, but this is a temporary phenomenon. As the blood bath in the crypto market continues, closer home in India, Bitcoin’s valuation fell from ₹55 lakh per token last week to ₹17.84 lakh per token at the lowest point on Tuesday, which is plunge of 67.5 per cent. Global crypto market cap stood at $983 million.