Bitcoin's new fall brings 23% of its active wallets closer to losses

Bitcoin's price fell by more than 15% on Wednesday, leaving nearly 23% of its active wallets in the red, according to data from GlassNode. 

The analysis firm blockchain, GlassNode, noted that Bitcoin's drop below $33.000 on Wednesday caused losses to about 23% of its active wallets. 

The GlassNode chart shows which active Bitcoin wallets or entities are currently in profit. According to the data, only 77% of active wallets are in profit, leaving the rest at around 23% in the red. 

Bitcoin (BTC), the market-leading cryptocurrency, plunged more than 15%, losing nearly $13.000 per unit in just a few minutes, after China revealed new bans on the cryptocurrency industry in the country. The price of Bitcoin opened on Wednesday near $42.500. 

The Asian nation announced that financial and payment institutions are now prohibited from providing services or engaging in any kind of interaction with cryptocurrencies, and digital assets, which immediately caused a negative effect on the price of BTC, plummeting its value to levels not seen since the beginning of the year. Bitcoin touched the $30.000 level after 3 and a half months, although at the time of this publication, it is struggling to reach $40K, with a current value of $39.600. 

It may interest you: Galaxy Digital: The international banking system and gold consume twice as much energy as Bitcoin

China, Elon Musk and the collapse of Bitcoin

Bitcoin started to decline since Elon Musk, owner of Tesla, decided to change his mind about the cryptocurrency that he had been defending for so long days and of which he had declared himself a “fan”. 

Musk announced that his electric car company would suspend Bitcoin payments, citing concerns about the carbon footprint that the blockchain network's energy consumption has on the environment. He then stated that other cryptocurrencies, such as Dogecoin (DOGE), They are faster and more efficient than BTC, discrediting the cryptocurrency that a few days ago brought it earnings of more than 80% to Tesla, among other things.  

Musk's statements began to have an impact on the price of BTC, which fell by around 10% after he announced the suspension of Bitcoin payments at Tesla. 

Now, the prohibitions that were announced by the People's Bank of China (PboC), the country's central bank, accentuated the fall of the cryptocurrency, collapsing the BTC market by more than 15%. China criticizes the volatility that Bitcoin has had in recent months and points out that this can cause losses to investors, so the refusal and the ban on the crypto industry is a measure to guarantee the integrity of investors and their funds. 

Some analysts also point out that the details he just revealed Tether Limited The decline in stablecoin reserves is also linked to the fall, noting that 75% of these reserves are invested in high-risk financial products. 

Bitcoin crash wipes out Tesla's gains

In addition to the drop in the value of its shares, Tesla also saw the profits it had made from its multi-million dollar investment in Bitcoin disappear. In early February, Tesla revealed who had invested $1.500 billion in BTC, at a purchase price between $30.000 and $45.000. 

In less than 2 months, the company saw this investment grow by 80%. At the end of April, Musk announced that Tesla had sold 10% of its initial investment for $275 million. However, with the recent and latest drop that BTC has seen, initiated by Tesla's own shares, the company has lost all of its profits from the Bitcoin investment. 

Tesla shares also fell 20% after announcing the suspension of cryptocurrency payments. 

Other cryptocurrency companies, such as Coinbase:, Galaxy Digital, Marathon Digital, Riot Blockchain y microstrategy have also seen the value of their shares fall in recent hours. 

Cryptocurrencies lose $820.000 billion

Bitcoin has dragged along almost all cryptocurrencies on the market, which are also experiencing huge losses in value. In total, the cryptocurrency market has lost more than $820.000 billion since Bitcoin's fall in value. 

By May 13, the cryptocurrency market surpassed $2,5 trillion in market capitalization. However, as of this writing, the crypto market's market cap is barely above $XNUMX trillion. 1,67 trillions of dollars, showing a loss of almost $825.000 billion last week. 

Bitcoin's market cap, which had been above $1 trillion, is now worth $740.000 billion. Ethereum (ETH), whose market cap recently surpassed $500.000 billion, is now valued at $300.400 billion. 

Despite the sharp drop, crypto markets seem to be recovering. At press time, Bitcoin is showing a 3,5% growth in the last hour, as are the major cryptocurrencies in the industry. 

Continue reading: Bit2Me Capital, the first Spanish investment vehicle specialized in blockchain and cryptocurrencies