- 71.73% drop in BTC addresses from January 2022 to 2023.
- $1 million addressed dropped by 73.33.
- $10 million addresses dropped by 62.5%.
2022 can be considered the worst year for the crypto industry, and the crypto winter wiped out nearly 80,000 Bitcoin millionaires. Cryptocurrency paved the way for a new class of riches in recent years, where many people went from rags to riches by buying early in the crypto industry.
As per data, up to January 2, 2023, the bitcoin addresses numbered 28,007, representing a drop of around 71.73% from 71,085 compared to January 2, 2022. The number of millionaire addresses was 99,092 at the start of last year because BTC hit its all-time high of $68,789.63 on November 10, 2021.
During the same period, the addresses holding $1 million of BTC stood at 90,902 in January 2022, which dropped to 24,208 in January 2023, meaning a drop of 73.33%. While the addresses with a minimum of $10 million were 8,190 in January 2022, dropped by 62.5% and now stand at 3,799 in January 2023. The majority of BTC wallets that hold between $100 and $999 now stand at 13.47 million.
Bitcoin holdings were significantly devalued during the bear market of 2022. The drop in millionaires’ addresses proves how much the currency has fallen, 75.51% from its all-time high at the time of writing. Many reasons can be attributed to this drawdown: Terra ecosystem collapse, FTX-saga, and the ongoing crypto winter.
All these factors started a domino effect resulting in distrust among the general population regarding the industry, causing a dramatic decrease in volumes, which fuelled the downtrend.
These factors can not be held accountable solely for the drop in addresses; many holders have liquidated their assets to avoid further losses. Many institutional investors have also jumped into this liquidation spree; for example, MicroStrategy sold over 700 BTC, citing taxation, which was shocking as the company had previously vouched never to sell their assets.
With everything going on in the crypto industry and the possibility of stricter rules and regulations coming in near future, that could either boost or damage the growth. Some still argue that things would be better for the people who stay for a longer time.
Many new interesting projects are hitting the market soon, along with implementing Federal Laws, there is still hope for the industry to bounce back, and it’s not foolish to hope that the better days for the industry are still ahead.
Bitcoin currently trades at $16,853 with a jump of 0.65%; its market cap saw a rise of 0.66% and is at $324 billion, while its volume rose by 41.46% and is now at $16 billion in the last 24 hours.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/01/04/cryptowinter-wipes-of-80k-btc-millionaires-in-2022/