The world’s richest Bitcoin trader has lost $5 billion in a month as the value of the cryptocurrency continues to plummet.
The unnamed billionaire owned 288,130 digital coins as of November 9, worth $19.45 billion (£14.7 billion).
However, the same amount of Bitcoin on December 5 was valued at $14.1 billion (£10.6 billion) – a drop of about $5 billion.
The trader then decided to sell around $1.5 billion in his crypto vault on December 7 to ensure that he remains extremely rich no matter what happens to the coin. .
This comes as Bitcoin plummets 16.5% on Saturday, dropping a fifth of its trillion-dollar value.
Cryptocurrencies can be riskier than other investments because they are volatile and speculative – their prices often rise and fall very quickly, sometimes for seemingly no reason.
Many cryptocurrencies have a short track record, making them confusing and difficult to predict.
This type of investment is also not regulated by the regulator, which means you won’t be protected if things don’t go your way.
Meanwhile, a crypto trader said he lost millions of dollars in less than five minutes.
Anonymous Reddit user claims he made $1.3 million (£900,000) after investing in SQUID, the digital currency inspired by Netflix’s Squid Game series.
The cryptocurrency rallied to a peak price of $2,681 (£2,000) before plummeting to $0.01 – a 99.99% drop from the previous month.
Gizmodo technology website previously warned that the coin is likely a scam, commonly known as “carpet pulling” that occurs when new cryptocurrency creators quickly cash out their coins for real money.
The drop came less than a week later Bitcoin hits a record high of over $69,000 (52,000 pounds).
The sharp drop wiped out around $300bn (£226bn) from the total electronic money market in just two days.
All other things Main players including ethereum, Binance’s BNB, solana, cardano, and Ripple’s XRP fell about 10%.
The omicron variation has also resulted in risk aversion to concerns about what it could mean for the reopening of the global economy in the coming months.
Global stocks are down more than 4% from their November record, while havens like Treasuries are up.
The dollar has also strengthened against other fiat currencies and cryptocurrencies this week, partly because interest rates are rising to reduce inflation.
Risks of buying with cryptocurrencies
Investing and buying with cryptocurrencies like Bitcoin is very risky.
Their value is very volatile and City monitors Financial Control Authority warned investors to be prepared to lose all of their money.
Investing in cryptocurrencies is not a guaranteed way to make money.
You should also think carefully about making purchases with cryptocurrencies.
For example, Bitcoin has had intense price swings in recent months, and prices can change almost hourly.
Bitcoin price was at $40,258 on January 9, according to Coindesk, but fell to $34,214 just three days later.
That’s a 15% discount.
These price movements are risky for a business because you can sell an item with Bitcoin at one price and the value can drop shortly after, leaving you with less money from a purchase or sale.
Similarly, the price of Bitcoin has increased by more than 21% since the beginning of this week, so it can be difficult for buyers to get an accurate idea of the price of an item if its value changes on a daily basis.
https://www.thesun.co.uk/money/16993708/bitcoin-richest-trader-loses-five-billion/ Bitcoin’s Richest Trader Loses $5 Billion In One Month As Crypto Markets Crash