Crypto Winter Wiped Out Over 70% Bitcoin Millionaires Since Jan 2022: Report

A report suggests that there has been a drop of about 71.73 per cent or 71,085 addresses between 2 January 2022 and 2 January 2023, which were Bitcoin millionaire addresses. 

Data from the report says that as of 2 January 2023, the number of Bitcoin millionaire addresses stood at 28,007, as compared to 99,092 at the start of last year.

The crypto market has seen a sharp downturn since early last year. Its value is currently down by 63 per cent from a year-ago period when it was valued at over USD 45,800. At the time of writing, Bitcoin is valued at USD 16,844.

The downturn in crypto values has had a huge impact on the wealth of many crypto investors. 

According to the Finbold report, number of addresses holding USD 1 million worth of Bitcoin stood at 90,902 to record in January 2022. This number came down by 73.33 per cent to 24,208 in the first month of 2023. 

“At the same time, addresses with at least USD 10 million worth of Bitcoin stood at 8,190 in January 2022 before plunging by 62.5 per cent to 3,799 in January 2023. Notably, most Bitcoin addresses hold between USD 100 and USD 999 worth of BTC at 13.47 million in January 2023,” the report said.

Numerous factors such as regulatory scrutiny, turbulent markets, macroeconomic factors, and fraud-related incidents like the FTX crypto exchange crash and the Terra (LUNA) ecosystem crash have contributed to a phenomenal fall of cryptocurrency values across the board in 2022.

The report concluded by stating that experts believe the price of risk assets like Bitcoin to continue to suffer over a longer time frame. This would mean that the number of Bitcoin millionaires will stay on the lower-end in the coming months unless crypto market stabilises.