The price of virtual currencies has plummeted recently. Among them, Bitcoin (Bitcoin), the largest by market value, once fell below $18,000 a few days ago, reaching a two-year low of $17,630.5. Bitcoin surpassed the $20,000 mark yesterday, and rebounded 5.2% to $20,751 at 7:00 last night, but it was still down more than 84% from its historical high of $68,990.9. Based on market data, the total market value of virtual currencies is about $870 billion. The highest peak was about 2.9 trillion US dollars, and it fell by 70% or more than 2 trillion US dollars (about 15.6 trillion Hong Kong dollars).
Net worth fell 81% to $17.7 billion
The sharp drop in virtual currency has shrunk the wealth of the founders of related exchanges, including Changpeng Zhao, the founder of Binance who was once among the “richest Chinese”. About 748 billion Hong Kong dollars), down to about 17.7 billion US dollars (about 138 billion Hong Kong dollars), a cumulative decline of 81% this year, that is, a loss of more than 600 billion yuan, ranking 84th in the world.
Sam Bankman-Fried, CEO of FTX, has reduced his assets to about 8.72 billion US dollars, a cumulative loss of 46% this year, and a cumulative loss of 66% if compared with the peak of 26 billion US dollars.
In addition, Coinbase founder Brian Armstrong’s wealth has shrunk by 85%, from $13.7 billion to only $2.1 billion.
Analysts expect Bitcoin to see $11,000
Analysts pointed out that the continued interest rate hike in the United States has caused investors to reduce their holdings of risky assets such as virtual currencies and technology stocks. In addition, the collapse of the “stablecoin” TerraUSD (UST) last month has caused investors to lose confidence. Coinbase also announced 18% layoffs and other factors earlier. Bitcoin analyst Rager wrote that Bitcoin may not have bottomed out now. Based on the previous bottom cycle, it will continue to decline in the next two months, and the minimum may fall to nearly $11,000.
The original text was published on AM730 https://www.am730.com.hk/Finance/The wealth of the rich in the currency circle has evaporated – Changpeng Zhao, the richest man in China, lost 600 billion/324922