As a direct result of the downward pressure that has been witnessed in the cryptocurrency market, which has resulted in a loss of almost one trillion dollars in market cap since the beginning of the year, the number of Bitcoin (BTC) addresses that hold one million dollars or more in value has also decreased.
Approximately 5,856 of the addresses had a combined balance of approximately $10 million. The remaining 72,080 addresses have a balance of $1 million apiece or more.
When employing a web archive tool Wayback Machine, it was determined that the number of addresses BTC with over $1 million worth of Bitcoin are down since pretty much the start of the year by 21.34%, with 99,092 addresses recorded on January 5.
Bitcoin millionaires continue to decline
Notably, the number of Bitcoin millionaires has decreased dramatically since the start of January, but if we take the date further back to October 2021, when Bitcoin was around its peak, the drop is more remarkable.
Indeed, on October 28, 2021, when 116,139 addresses were declared Bitcoin millionaires it would indicate a 32.89% fall in seven months.
A combination of factors such as regulatory scrutiny, turbulent markets, geopolitical unrest, and interest hikes continue to have an adverse effect on the asset’s performance.
Nevertheless, some analysts still believe the value of Bitcoin will continue to rise; a senior analyst at Deutsche Bank Research, Marion Laboure, stated:
“In the case of Bitcoin, we have a limited supply; over 90% of Bitcoin are already in circulation and when you have a fixed supply with increasing demand, the prices tended to rise as we have seen last year.”
Currently, the price of Bitcoin is trading at $28,804, down 0.69% in the last 24 hours and 1.68% across the previous week, according to data from CoinMarketCap.