The Bitcoin price has been hit since it reached its all-time high in 2021, and as a result, the number of Bitcoin millionaires has dropped dramatically since then. These addresses with over $1 million worth of BTC peaked in November 2021 and have been in a steady decline ever since.
Bitcoin Millionaires Suffer Losses
In November 2021, when the bitcoin bull market was in full swing, the number of BTC millionaires had surpassed 100,000 wallets. At its peak, there were 108,886 wallets with more than $1 million worth of BTC in their balances, but according to data from BitInfoChartsthis number has fallen below 25,000.
With a current count of 24,533 millionaire wallets, more than 77% of bitcoin investors with millionaire status have been wiped out in just over a year. Most of the losses occurred in the first half of 2022, and as of June 2022, there were just over 26,000 BTC wallets with more than $1 million in their balances.
Wallets with at least $10 million worth of BTC were also affected during this time. He was sitting at just 3,852 at the time of writing. However, smaller investors have been on the rise. According to a report from Glassnode, the number of BTC addresses with more than 0.1 and 1 BTC reached new all-time highs on Tuesday, January 10.
This sharp accumulation of these smaller addresses shows that investors are not put off by falling prices. Rather, they are taking advantage of the low prices to increase their shares.
BTC price holding steady above $17,000 | Source: BTCUSD on TradingView.com
BTC profitability also decreases
The drop in the number of bitcoin millionaires is also in line with the decline in the profitability of the digital asset. Bitcoin started the year 2022 with only about a quarter of its investors experiencing losses, but by January 2023, it has dropped sharply and now only 51% of BTC investors are making a profit.
Its large concentration of holders has also decreased during this time. Only 10% of wallets are now classified as large holders, indicating a redistribution of BTC from whales to smaller holders. It also points to further decentralization with a more adequate supply distribution for market participants.
As for the bitcoin price, it is still trading well below its all-time high despite its recent recovery above $17,000. Data from Messari shows that the price of the digital asset is currently down more than 74% from its November 2021 high.
BTC is changing hands at $17,320 at the time of writing. It is up 3.7% in the last week on a 24-hour trading volume of $16.2bn.