Cryptocurrency winter wipes out over 70,000 Bitcoin millionaires in 2022

The crypto winter wiped over 70,000 Bitcoin millionaires in 2022, as the recent volatility experienced by top cryptocurrency resulted in millionaire holders suffering significant losses, a report showed on Tuesday.

According to data by Finbold (as of January 2), the number of Bitcoin millionaire addresses stood at 28,007, representing a drop of about 71.73 per cent or 71,085 addresses from January 2 last year.

At the start of last year, the number of millionaire addresses stood at 99,092.

"The rise of Bitcoin and other cryptocurrencies in recent years has created a new class of wealthy individuals, many of whom had made their fortunes by buying into the market early," said the report.

However, the past year has seen the market experience a sharp downturn, with the value of Bitcoin falling significantly, resulting in a devastating impact on the wealth of many holders.

Notably, most Bitcoin addresses hold between $100 and $999 worth of BTC at 13.47 million as of January 2023, representing a drop of about 13.33 per cent (on-year) from 15.63 million.

The second largest group of Bitcoin holders accounts for at least $1,000 worth of BTC at 5.33 million as of January 2023, while in 2022, the figure stood at 6.54 million.

"As Bitcoin's price continues to fall, many investors have seen their holdings significantly devalue. Therefore, the drop in millionaire addresses highlights how far the crypto market has fallen from the 2021 bull run," the report said.

It is worth noting that the declining number of Bitcoin millionaires is not solely an impact of the plunging prices.

"With Bitcoin undergoing a free fall in recent weeks, the likelihood of holders liquidating their assets increased to avoid further losses. Institutions have also jumped on the liquidation bandwagon, with American business intelligence firm MicroStrategy selling over 700 Bitcoin," the report said.

--IANS

na/vd