The number of Bitcoin millionaires has shrunk significantly as a result of the cryptocurrency market’s increased volatility and consequent decrease in value over the previous three months.
According to Finbold data, there are 87,953 addresses with a Bitcoin balance of more than $1 million as of January 26, 2022. Each of the 7,008 addresses has a balance of around $10 million. The remaining 80,945 addresses each have a balance of $1 million.
Notably, the number of Bitcoin millionaires has fallen in the previous three months. In comparison to October 28, 2021, when 116,139 addresses were designated as Bitcoin millionaires, 105,820 had a value of at least $1 million, and 10,319 had a balance of at least $10 million. According to the statistics, the number of Bitcoin millionaires has declined by 28,186, or 24.26%, between the two dates.
A number of variables, including regulatory scrutiny, volatile markets, geopolitical turmoil, and covid, conspired to have a negative impact on the asset’s performance. Despite the turbulent start to the year, however, a lot of economists continue to praise the asset as a hedge against increasing inflation.
Furthermore, the value of Bitcoin has dropped significantly since October 28, when the flagship digital asset was trading about $61,000. At the time of writing, Bitcoin was trading at $37,851, up 3.94% on the day, and while it’s beginning to recapture $38,000, it’s still valued much lower than three months ago.
One reason the market may have fewer Bitcoin millionaires now than it did in October is because the value of BTC has declined. Cryptocurrency traders can continue to keep the same amount of cryptocurrency as before; just the USD value has decreased.
Because of the dramatic decrease in the value of Bitcoin since the beginning of the year, the number of liquidations has surged in recent weeks, with $372 million in long positions in the permanent market across all exchanges liquidated in only one day, January 22.
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