Forbes Estimate Losses of Crypto Billionaires from the Market Fall

Forbes has estimated that a dozen of crypto billionaires have lost billions as Wednesday’s broad-based plunge that sent all cryptos into a tailspin.

May 20, 2021, | AtoZ Markets – Against the backdrop of the market collapse, cryptocurrency billionaires have lost a total of $15.5 billion, according to Forbes. The publication estimated the losses of major industry players over the past nine days.

Forbes estimate of top losers

FTX CEO Sam Bankman-Fried lost the most in dollar terms. According to Forbes, on May 10, his fortune was estimated at $16.7 billion, but after the market declined to $11.5 billion.

The Winklevoss brothers have lost $900 million each since May 10. The fortune of the head of MicroStrategy, Michael Saylor, fell 45% to $1.8 billion.

Vitalik Buterin completely lost his billionaire status due to the market collapse. According to Forbes, his fortune has decreased to $850 million.
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However, even in the current situation, the capital of cryptocurrency billionaires is still greater than it was a few months ago, the publication points out.

Recall that in April, 12 representatives of the cryptocurrency industry were included in the Forbes ranking of the richest people in the world.

Whales took advantage of the correction to buy bitcoin

Meanwhile, hedge funds and asset managers were the main buyers of bitcoin during the collapse of its quotations to $30,000, said strategist at the financial company BTIG Julian Emanuel in an interview with CNBC.

According to him, a 30% decrease in the price of the first cryptocurrency was a signal for many large investors to buy.

The strong rebound from the $30,000 level suggests that investors continue to view Bitcoin as a viable alternative in a diversified portfolio,” Emanuel said.

Cryptocurrency broker Genesis Global Trading sent similar information to its clients, writes The Block. The document says that large investment funds started buying bitcoin after falling below $35,000.

Sam Trabucco, trader of the market maker Alameda Research, spoke about a large investment in the first cryptocurrency at the time of the correction. He noted that cascading liquidations affect the natural movements of the market:

“Nobody wanted to sell as low as they had to. This means that as soon as the market is able to collect collateral, it must recover. This usually happens quickly - from a few minutes to hours, depending on the magnitude of the movement. "

Trabucco added that yesterday brought many earning opportunities for those who had free capital.

Recall that on May 19, the price of bitcoin dropped below $40,000 for the first time since January 2021.

Read also: Why Did the Cryptocurrency Market Crash, Should You Buy the Dip?

According to Glassnode analysts, the correction was caused by panic selling by short-term investors, while long-term investors were buying “at the bottom”. To date, the hodlers have accumulated 58% of the coins issued into circulation.

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