Billionaires CZ, Musk, Bezos, Gates, and others lost $93 billion on Tuesday.
Tuesday saw the publication of August US inflation figures by the Bureau of Labor Statistics. While 8.1% was the range for the projected figure, the actual revealed number was significantly higher at 8.3%. The likelihood of the Fed raising interest rates by 75 basis points has risen as a result of the same. According to Ritika Chhabra, a quant analyst and economist at Prabhudas Lilladher
Because inflation has been “stickier” than anticipated, it is quite possible that the Fed will raise interest rates by 75 basis points at its upcoming FOMC meeting on September 21.
Due to this negative outlook, most markets on Tuesday saw losses. Even as we went to print, they were having trouble recovering. Over the last 24 hours, the value of the cryptocurrency market fell by 6% overall, with Bitcoin and Ethereum falling by 8% and 6%, respectively. Stocks of businesses connected to the cryptocurrency industry, including MicroStrategy and Coinbase, have fallen.
The bourses were really trading in the red as well. At closure, the Nasdaq was down 5.1% and the S&P 500 had lost 4.3% of its value.
Fortunes of billionaires suffer a setback
The top billionaires in America had a $93 billion decline in their fortune on Tuesday. According to a recent Bloomberg study, the same might be attributed to the decline in the stock market.
The US stock market saw a significant selloff as investors anticipated that unexpectedly strong consumer price index data would prompt the Federal Reserve to hike interest rates more quickly, which is reflected in the massive daily losses experienced by the billionaires.
Notably, the fortunes of billionaires have decreased previously. The same set of people lost $78 billion in one day last month, immediately following a speech by Fed Chair Jerome Powell.
This time, Jeff Bezos’ wealth decreased by $9.8 billion, the largest among all the billionaires monitored by the Bloomberg Billionaires Index. The next hardest affected were Elon Musk and Mark Zuckerberg, whose net worths fell by $8.4 billion and $5.6 billion, respectively.
Additionally, as seen below, the net worth of Steve Ballmer, Larry Page, and Sergey Brin all decreased by more than $4 billion. Changpeng Zhao, an executive at Binance, lost around the same amount ($3.9 billion).
Both Bill Gates and Warren Buffett, who were in the top 10, had lost almost $3 billion apiece.
According to Bloomberg, the 500 richest individuals in the world today are collectively worth approximately $1.2 trillion less than they were at the beginning of the year.
Changpeng Zhao, CEO of Binance, has lost $61 billion, or roughly 64%, of his fortune, while Zuckerberg, CEO of Meta Platforms Inc., has lost $68.3 billion, or around 54%.