Richest Bitcoin Trader Loses $ 2.5 Billion In One Day As Cryptocurrency Market Crashes
BITCOIN’s richest trader lost $ 2.5 billion in a single day as the volatile cryptocurrency market crumbles again.
The toe curling loss comes as the cryptocurrency fell 16.5% on Saturday, losing a fifth of its trillion dollar value.
The mystery trader, who owns the largest share of Bitcoin in the world – around 288,000 of them – began to see his fortunes weaken in the early hours of this morning.
On Friday, the 34xp4vRoCGJym3xR7yCVPFHoCNxv4Twseo wallet held $ 16.29 billion in crypto. By Saturday morning, it had fallen to $ 15.45 billion, then to $ 13.81 billion by night, wiping out $ 2.48 billion in one day.
In fact, the hapless trader saw the value of his stash drop by $ 5.5 million in less than a month.
BitInfoCharts shows the wallet – which has been trading since October 2018 and holds 1.53% of all Bitcoin – peaking at $ 19.33 billion on November 11 before dropping to $ 16.78 billion a few days later, then hit a low of $ 13.8 billion today.
This is because one crypto trader claimed to lose millions of dollars in just under five minutes.
The anonymous Reddit user claimed to have made $ 1.3 million after investing in SQUID, the digital currency inspired by the Netflix Squid Game series.
The cryptocurrency hit an all-time high of $ 2,681 before dropping to $ 0.01 – a drop of 99.99% over the past month.
Tech website Gizmodo previously warned that the coin was likely a scam, commonly referred to as a âcarpet draw,â which occurs when the creators of the new crypto quickly cash their coins for real money.
The drop comes less than a week after Bitcoin hit a record high of over $ 69,000.
The sharp drop wiped out an estimated $ 300 billion in value from the combined crypto market in just two days.
Bitcoin, the number one cryptocurrency, reached a low market value of $ 51,808.54, according to figures from CoinDesk.
All other major players, including Ethereum, Binance’s BNB, solana, cardano, and Ripple’s XRP saw declines of around 10%.
Why has the cryptocurrency market collapsed?
Fluctuations in cryptocurrencies follow a period of volatility for financial markets, with soaring inflation forcing central banks to tighten monetary policy.
China has also stepped up its crackdown on Bitcoin mining, which helped spark the latest crash earlier this year.
The omicron variant has also led to risk aversion over concerns about what it could mean for the global economic reopening in the months to come.
Global stocks are down more than 4% from November’s all-time high, while safe-haven securities like Treasuries have rallied.
The dollar has also strengthened against other stables and crypto this week, in part because interest rates rise to bring inflation down.
How to spot crypto scams
CRYPTO scams are popping up all over the internet. We explain how to spot them.
- Promises of high or guaranteed return – Does the offer seem realistic? Scammers often attract money by making false promises.
- Heavy marketing and promotional offers – If they use marketing tricks to scam customers, beware.
- Unnamed or non-existent team members – Like any business, you should be able to easily find out who is running it.
- Read the white paper – Every crypto company should have a white paper. This should explain how he plans to grow and make money. If that doesn’t make sense, maybe it’s because the founders are trying to confuse you.
- Do your research – Check out online reviews and Reddit discussion threads to see what others are saying.
5 risks of crypto investments
The Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Certain investments announcing high returns based on crypto assets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: The high volatility of crypto-asset prices, combined with the difficulties inherent in a reliable valuation of crypto-assets, puts consumers at high risk of loss.
- Product complexity: The complexity of some crypto-asset related products and services can make it difficult for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back to cash. The conversion of a crypto-asset into cash depends on the existing demand and supply in the market.
- Costs and fees: Consumers should consider the impact of fees and charges on their investment, which may be higher than those of regulated investment products.
- Promotional material: Companies may overestimate product returns or underestimate the risks involved.
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