2022 was a year no crypto investor would want to look back at.?
The crypto market lost trillions of dollars in value, besides being rocked by the Terra Luna crash and the FTX collapse. And how could the investors of the most popular cryptocurrency, Bitcoin, not have been affected by it?
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Most of the?major crypto tokens witnessed a bloodbath last year, including the most popular one, Bitcoin. And, as expected, the massive drop in bitcoin's value had an impact on its investors' wealth, with over 70,000 Bitcoin investors losing their millionaire status by 2022.
According to data by Finbold (as of January 2nd, 2023) and mentioned in the IANS report, the number of Bitcoin?millionaire addresses stood at 28,007, representing a drop of about 71.73% or 71,085 addresses from January 2 of 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 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 investors hold between $100 and $999 worth of BTC at a value of 13.47 million as of January 2023,representing a drop of about 13.33% (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.
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It is also 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.
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