The price of Bitcoin has taken a hit since reaching its peak in 2021, and as a result, the number of bitcoin millionaires has decreased significantly since then. The address contained more than $1 million in BTC at its peak in November 2021 and has continued to decline since then.
Bitcoin Millionaires Suffer Losses
Back in November 2021, when the bitcoin bull market was in full bloom, the number of BTC millionaires exceeded 100,000 wallets. At its peak, there were 108,886 wallets with a BTC balance of more than $1 million, but according to data from BitInfoCharts, this number has fallen below 25,000.
In the current number of 24,533 millionaire wallets, more than 77% of bitcoin investors with millionaire status have been deleted in more than one year. The majority of losses occurred in the first half of 2022 and in June 2022, there were just over 26,000 BTC wallets with balances over $1 million.
Wallets holding at least $10 million worth of BTC also took a hit this time. At this time only 3,852 were written. However, small investors have stepped up. According to a report from Glassnode, the number of BTC addresses higher than 0.1 and 1 BTC reached an all-time high on Tuesday, January 10.
The marked accumulation of these smaller addresses suggests that investors are not bothered by the price drop. Instead, take advantage of the low prices to increase your ownership.
BTC price holding steady above $17,000 | Source: BTCUSD on TradingView.com
BTC Profitability Falling Too
The decline in the number of bitcoin millionaires is also in line with the decline in the profitability of digital assets. Bitcoin started 2022 with only about a quarter of investors experiencing losses, but by January 2023, it had dropped drastically, and now only 51% of BTC investors have made a profit.
The concentration of large containers has also decreased during this period. Only 10% of wallets are currently classified as large holders, indicating a redistribution of BTC from whales to small holders. It also implies greater decentralization with more distributed supply to market participants.
As for the price of bitcoin, it is still trading below its all-time high despite recovering above $17,000. Data from Messari shows that the price of the digital asset is now down more than 74% from its high in November 2021.
BTC is changing hands at $17,320 at the time of this writing. It was up 3.7% last week with a 24-hour trading volume of $16.2 billion.