Bitcoin crashes to December 2020 levels, leaving investors, sovereign governments, listed entities in bits and pieces

‘Save me, God, I won’t buy the dip again!’ has become the new murmur among Bitcoin investors.  

We have often heard the phrase, ‘what goes up must come down’; it means the things that rise, must eventually return to the earth due to gravity. And, it is turning out to be true for cryptocurrencies, especially for Bitcoin.   

Once a dream thing to be owned has now turned out to be a nightmare for the investors as it crashed mercilessly from the high of USD 31,536 to the low of USD 20,079.72 in just a span of nine trading sessions. The most famous cryptocurrency is nearly 36 per cent from the high of June 07, 2022.   

Interestingly, this severe crash in Bitcoin has not only impacted individual traders but also, adversely impacted listed entities and sovereign governments. Around 10 globally public-listed companies and three governments including Ukraine, El Salvador & Georgia holding Bitcoins stand to lose over USD 2.56 billion, according to data from crypto research firm CREBACO Global.  

The biggest losers were MicroStrategy Inc and Elon Musk’s Tesla, which lost USD 766.17 million & USD 309.88 million, respectively, as of June 13. Among governments, Ukraine alone lost USD 1.25 billion when Bitcoin plummeted below USD 25,000.   

At the time of writing, Bitcoin was hovering around the USD 20,200 mark, down by 9.32 per cent in the last 24 hours while in the last seven days, it slipped 33.60 per cent. Interestingly, Bitcoin has never managed to cross above its prior day's high in the last nine trading sessions and now, it slipped below the level that was last seen in the latter part of December 2020.   

Hence, ‘Save me, God, I won’t buy the dip again!’ has become the new murmur among Bitcoin investors.