By George Ward
According to multiple reports, BTC millionaires have fallen by about 70% in 2022. Factors such as increased regulatory scrutiny and market instability have contributed to the incident.
Number Of BTC Millionaires Fall In 2022
In 2022, the crypto market lost about $1 trillion in its market valuation. As a result, the crypto market cap dropped below $1 trillion in June for the first time in 2022. This fall is due to the tremendous pressure imposed on the crypto market.
According to multiple on-chain data, Bitcoin millionaires have dropped by about 70.23% from Q1 to Q3 2022. This fall is due to the bearish crypto market. Also, the price of the coin has fallen massively this year.
On September 28th, the number of BTC millionaires was about 29,497. BitInfoCharts.com, an analytics platform, revealed that 25,395 addresses have a BTC balance worth at least $1 million in Q3 2022.
Also, 4,102 of these addresses had a combined total of at least $10 million in Q3 2022. According to the Wayback Machine, a web archive tool, over 99,092 Bitcoin wallet addresses had at least $1 million on January 5th, 2022.
Furthermore, several cryptocurrency lenders and hedge funds have gone bankrupt this year. These events contributed to more investors leaving the market.
This may have affected the trust investors have in the crypto market. Also, Bitcoin mining’s difficulty has increased, with some miners going bankrupt.
Bitcoin’s Price Steadies At $20K
Meanwhile, several investors have converted their crypto holdings to stablecoins like Tether’s USDT and Circle’s USDC. Perhaps, they are waiting for the market to stabilise before re-entering.
Bitcoin is currently trading in the $20K region. However, the digital currency has dropped more than 50% from its ATH of $69K in 2021.
As of October 28th, 2021, over 116,139 Bitcoin wallet addresses were millionaires. But the number has dropped now.
Coincidentally, the Crypto.com exchange showcased a commercial promoting digital currency. The ad read, “Fortune favours the brave!” However, several crypto investors have left since the crypto market collapse.
Several factors led to the fall of Bitcoin’s price. They include unstable markets, increased regulatory scrutiny, interest hikes and geopolitical unrest. Nevertheless, Bitcoin recently reclaimed $20k after trading below $19k for weeks.
Meanwhile, Bitcoin has a long way to go if it must surpass its 2021 ATH. However, the recent price increase connotes that normalcy is gradually returning to the crypto market.