$200 billion crypto wipeout attracts the savvy corporates: MicroStrategy outstrips Tesla at half a billion!
To say that the last few weeks has been an absolute rollercoaster in terms of the increase and decrease in cryptocurrency values would be an absolute understatement.
It is difficult to determine the more remarkable of the two scenarios, that being the actual amounts concerned, or the nonchalant response by the global public which has simply accepted these telephone number-style figures and instead of running away, has become increasingly more interested in accumulating various denominations of cryptocurrency.
As if a $700 billion drop in value of the five most popular cryptocurrencies in just 24 hours in May having been responded to by a wave of tumultous silence wasn’t enough of an indication that the entire landscape of the financial markets has changed completely, here we are, just a month later and the values had risen to someway back toward their highs of the beginning of the year, and then suddenly crashed by another $200 billion yesterday.
The market-wide nosedive that shows no signs of slowing down as the main money markets open today has resulted in nearly $200 billion having been wiped from the cryptocurrency market since yesterday, which is in addition to a further $200 billion in losses over the last week.
Yet again, no reaction from any commentators, government officials, central banks, or analysts.
Last time, the quiet critical thinkers began to look at cryptocurrency as a now affordable entry point into an ecosystem which is clearly regarded as a store of value and potential investment as they calmly exchanged fiat for crypto in order to ride the next wave of value increase, which, following the inevitable tweet from Elon Musk, the man who had caused the crash in the first place, counteracting his original tweet, arrived and brought the value of the five major cryptocurrencies back to 75% of their higher value.
Now, the huge crash has brought the clever money in.
Large companies are investing in Bitcoin today after the huge downturn in value.
One such company is software giant MicroStrategy, which has just bought half a billion dollars worth of cryptocurrency, with a speculative view that it may rise again soon.
Bitcoin advocates see it as a strong show of faith for the cryptocurrency, while shareholders appear less convinced.
MicroStrategy’s share price dropped 8% on Monday following the news. The investment is also down more than $60 million since the time it was made and the time it was announced due to the current market downturn.
Following this gigantic transaction, MicroStrategy now owns 13,005 bitcoins which takes the software company’s total holdings above 100,000, strengthening its position as the largest corporate investor into the cryptocurrency, ahead of Tesla.
Now that’s advocacy. Imagine anyone investing in any currency or stock after its collapse, and imagine the suits from the offices of the authorities moving in to feel the collars of those responsible. Even the banks were fined billions a few years ago for manipulating Forex benchmarks and LIBOR.
Nobody bats an eyelid when some individuals on Twitter cause trillions of dollars worth of fluctuations in cryptocurrencies. In fact, quite the opposite is true – they buy in!
This, ladies and gentlemen, is the new economy.