You Think You’ve Lost A Lot from These Crypto Falls; How About $44 Billion?
Imagine losing $40 billion in a few days. It’s just on paper, but recent crypto falls show extreme effects on big money crypto players.
Less than a month ago, we reported to you how Ripple had become a darling in the cryptocurrency space. Its XRP was up a mind-boggling 20,000% last year, putting it on track to end 2017 as the number one performing digital asset.
That growth helped to pad its founders’ financial coffins mightily.
Well, in the crypto world, we know all good things can come crashing down at a moment’s notice. The recent cryptocurrency price falls have taken a toll. Ripple company co-founder Chris Larsen has loss roughly $44 billion – on paper, according to CNBC.
XRP has shed 74% of its value throughout the recent falls. That is clearly a significant retreatment from the all-time high of $3.84 it hit on Jan. 4.
At the time of writing this piece (midnight, New York Eastern Time), XRP was trading around $1.36. It had risen to above $2 before retreating to that price.
With XRP trading near $1 Wednesday, Larsen now holds the equivalent of just $15.8 billion, according to CNBC calculations using figures from Forbes.
Recovery prayers answered?
You’ve been hearing all week about the high volatility cryptos have endured. For experienced crypto traders, this has been a cake walk. However, for those who are newbies who got in last year on fears of missing out, this has been a nerve wrecking start to the year for cryptos.
There may be some hope, however. Traders looking to buy on the dip caused several cryptos to move higher over the last 24 hours. For example, in addition to Ripple moving higher, so did Bitcoin, which was at $11,400 at the time of writing. Ethereum was at $1,015; and Bitcoin Cash was at $1,766.
One thing that is certain is that it’s anyone’s guess where these cryptos’ prices are headed next. At Citi, an analyst released a note Wednesday stating that Bitcoin could fall further to between $5,605 and $5,673 before rebounding.
Considering how fast Bitcoin ripped higher last year – roughly 2,000% – this recent fall, although chaotic, may be a good thing for the space. Industry observers like Chris Burniske is one of those who believes so. He co-authored "Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond."
To CNBC, he said:
"The markets over the last year have certainly appreciated more quickly than the fundamentals have, and this is a shakeout to hopefully draw the financial reality closer to the fundamental reality."