Investor losses in cryptocurrencies — both locked-in and unrealized or paper losses — are enormous, and will only worsen as cryptocurrency prices continue to plunge. According to data from www.coinmarketcap.com, the estimated market value of all cryptocurrencies, as of noon Monday, Eastern Standard Time, was $258 billion, a drop of 69 percent from a peak of $830 billion, just three months ago, on Jan. 7.
Bitcoin, the dominant cryptocurrency, suffered $177 billion of that loss as its market value dropped 60 percent over that same time period. Crypto investors who have not sold any of their cryptocurrencies since the price of their particular cryptocurrency peaked still have experienced substantial paper losses.
They still have unrealized gains, though, if they purchased their cryptocurrency for less than its current selling price. For example, at noon Monday, bitcoin’s price was $6,747, a price it first reached on Nov. 1 of last year. Therefore, anyone who purchased bitcoin before that date still has an unrealized gain.
The same is true for investors who purchased bitcoin at those times since Nov. 1 when the price dipped below Monday’s price: After Nov.
1, it traded as low as $6,048. However, crypto investors are underwater on their investment if it currently sells for less than what they paid for it. Read more from thehill.com…
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