Over 80,000 Bitcoin Investors No Longer Millionaires Due To This Year's Crypto Crash

More than 80,000 Bitcoin investors have reportedly lost their millionaire status, all thanks to the ongoing bloodbath that has wreaked havoc in the crypto market

Last year on November 12th 2021, i.e. just days after Bitcoin had hit a new all-time high of around $68,000, a total of 108,886 BTC addresses reported a balance greater than $1 million, according to data from BitInfoCharts.

Fast forward to the present day, with the price of Bitcoin struggling to hold around $20,000, just 26,284 bitcoin (BTC) addresses are reported to contain holdings valued at upward of $1 million. Hence, the number of paper millionaires has declined by more than 75% throughout the last nine months, as per a report in Cointelegraph.

shutterstock

The dramatic decline in the price of bitcoin has also impacted the number of whales, i.e, those who boast a Bitcoin wallet worth more than $10 million. While there were 10,587 addresses with a minimum cash value of $10 million in November last year, just 4,342 held the same status yesterday - a reported decline of 58%.

But despite the decline in the net worth of former bitcoin millionaires, the crypto bear market has seen more than 13,000 new ¡°wholecoiners¡±, i.e. a wallet that contains one or more bitcoin, added to the market. This brings the total number of wholecoiners to just over 860,000, as per the report. This significant spike in the number of wholecoiners would suggest that retail investors are accumulating large amounts of BTC while prices tank and continue to bleed.

Adding further credibility to the retail accumulation narrative, more than 250,000 addresses have added 0.1 BTC, or $2,000 at the time of writing the report yesterday, or more to their holdings over the past 20 days, according to data from Glassnode.

Also Read: Meet The Dutch 'Bitcoin Family' Who Emigrated To 'Bitcoin Heaven' Portugal For Tax-Free Crypto

Factors Impacting Crypto Market

Bitcoin and the rest of the digital asset market have been negatively impacted by a number of different issues, including increased regulatory scrutiny, sustained geopolitical unrest, rising inflation and interest rate hikes, the report stated.

Due to the increasing uncertainty around the stability of global markets, commentators seem to agree that the price of risk assets like Bitcoin could continue to suffer over a longer time frame.

Last week, state-run Chinese newspaper Economic Daily warned investors about bitcoin heading towards zero. "Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high," the newspaper had said.

"In the future, once investors' confidence collapses or when sovereign countries declare bitcoin illegal, it will return to its original value, which is utterly worthless," it added, as reported by South China Morning Post.