Wednesday, May 18, 2022

Cryptocurrency prices stabilize after another wild weekend.

Over the weekend, bitcoin prices fell to around $ 31,000, more than 50 percent from the previous month’s high. It has recovered somewhat and is currently trading at around $ 37,000.

“About $ 20 billion worth of long positions were eliminated last week,” Sam Bankman-Fried, chief executive of the crypto derivatives exchange FTX, told the DealBook newsletter. “In terms of price movements: the biggest part of this is liquidation,” he said, the worst time is over.

But he also noted news from China late Friday. An action On Bitcoin Mining and Trading. It added other news of the official investigation, which has scared crypto investors in recent times Hong Kong, Canada And this United States of america.

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Companies with bitcoins on their balance sheets can panic. For accounting purposes, cryptocurrency is valued at the purchase price in company accounts. If it increases in value, it is not reflected in the company’s accounts, but if it falls, the value is impaired and breaches quarterly profits. The three big corporate investors in bitcoin are Tesla, MicroStrategy and Square. Here’s where they stand:

  • Tesla: The electric vehicle company bought $ 1.5 billion in bitcoin in the last quarter at an average price of about $ 34,700 per coin, which is not far from its current price. Tesla Chief Executive Elon Musk has indicated that the company is not selling, but is probably not buying.

  • MicroStrategy: The business intelligence software company has spent approximately $ 2.2 billion on bitcoin at an average price of $ 24,450. The company bought more last week and is still sitting at a big profit.

  • Square: The payments company, led by Twitter chief Jack Dorsey, bought two batches of bitcoin for its coffers – valued at around $ 10,600 per coin at $ 50 million in October and about $ 51,000 at a price of $ 170 million in February. It lost $ 20 million on its holdings in the previous quarter. It is not planning to buy more, Its finance chief said this month.

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Nation World News Desk
Nation World News Desk
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