How much did Bitcoin investors lose in just one day?
The Volatile World of Cryptocurrencies
Cryptocurrencies are highly volatile assets in the markets, as evidenced by the general collapse on Monday, August 5th.
The question arises: how much did Bitcoin holders lose in just one day?
The answer lies in the aftermath of the day’s debacle, which wiped out a market capitalization of approximately 600 million euros in a single day.
The plummet of digital currencies paralleled historical selloffs of risky assets in the global market, fueled by recession fears and a general uncertainty about geopolitical and economic stability.
The price of Bitcoin dropped to just over $49,000, its lowest level since February 13th.
Just seven days prior, on July 20th, it had surged to $69,982.
The decline was drastic.
How much did investors lose with Bitcoin in their investment portfolios?
Experts’ analysis indicates that Bitcoin has dropped by approximately 17.5% for the month of August, a typically slow month for risky assets, and below the $55,000 minimum threshold that had supported it for most of the year.
If it fails to recover, it could be its worst month since June 2022, when it lost around 37%.
These sudden fluctuations highlight the importance of having a deep understanding of the cryptocurrency sector to invest successfully.
To delve deeper into Bitcoin, one can follow the course provided by Money.it.
Despite being the most valuable cryptocurrency, Bitcoin still shows a 27% gain since the beginning of the year.
However, the current price turbulence in cryptocurrencies has led investors to doubt the narrative of the currency as a hedge against uncertainty.
The turbulent events of Monday serve as evidence.
The whirlwind of sell-offs also engulfed the digital currency sector, with significant figures.
At one point on August 5th, Bitcoin was worth just over $49,000, reflecting an 18% drop from the previous day’s $61,054.
In euros, the loss was 19%.
This implies that the plunge translated to around €10,000 less in value for each Bitcoin held (about $11,000).
The extreme volatility to which the queen of cryptocurrencies – and digital currencies in general – is susceptible suggests that there could soon be new spikes in value.
However, analysts widely agree that Bitcoin’s narrative as a hedge is misleading.
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