With BTC $3k on Horizon, Big Companies Are Feeling the Brunt of Crypto Winter
If you think your crypto bag is looking a little sad, take a moment for some of the bigger companies that have invested massive amounts of capital into cryptocurrency. A recent portfolio update from Grayscale, the digital asset management startup from Digital Currency Group (DGC), reveals $400 million in losses over the past two weeks.
The firms Bitcoin Investment Fund, which previously held $1.27 billion worth of assets in early November, is now worth just $893.5 million. The most substantial losses, however, come from the firms Bitcoin Cash (BCH) and Ethereum Classic (ETC) Investment Funds, which are down 65 percent and 40 percent respectively.
The cryptocurrency market began a nosedive last week that saw it lose 30 percent value, wiping almost $80 billion off its market cap and shredding the prices of Bitcoin (BTC), Ethereum (ETH) and almost every other altcoin along with it. Despite an impressive recovery over the past 48 hours that has seen Bitcoin claw itself back up to $4,500 from a low of around $4,200, analysts believe the worst is yet to come, with some eyeing support as low as $3,500.
The developments haven’t scared off larger institutional companies though, with Fidelity Investments still going ahead with its new company – Fidelity Digital Asset Service LLC. The new subsidiary will act as an avenue for hedge funds and family offices to access digital assets in a secure fashion by providing a connection to crypto exchanges. Many hope the move will add much-needed liquidity to the falling market.