The cryptocurrency market has seen a significant rise recently. This was noticed by investors after several months of constant declines. Indeed, bitcoin (BTC) is once again making headlines as it surges to new levels. This increase is reflected in particular by a new batch of millionaire owners. This new group of wealthy bitcoin holders capitalized on the market rally in 2023 to join the elite club of crypto millionaires.
The recent rise has had consequences on the side of crypto investors. On January 28, 2022, the number of bitcoin millionaire addresses stood at 72,483, an increase of 44,399 from the figure of 28,084 bitcoin millionaires recorded on January 5. During this period, bitcoin rose by around 37%. This now represents 61% more millionaire addresses. According to data provided by BitInfoCharts.com, 67,551 different addresses have a bitcoin balance valued at over $1 million. Additionally, as of January 28, 4,932 addresses held bitcoins worth more than $10 million.
As of January 5, 2023, approximately 24,279 addresses owned bitcoins worth at least $1 million. There are 3,805 addresses with bitcoins worth more than $10 million. Overall, there are therefore fewer crypto millionaires. Bitcoin’s rally has also had an impact on holders earning money in general. In particular, 60% of holders are making money at the current price, while 35% are losing. The remaining 5% broke even. It should be noted that the new generation of millionaires is far from made up of addresses that suffered loss during last year’s crypto winter. Indeed, through 2022, approximately 71,085 millionaire address holders have disappeared.
The causes of this recent increase in bitcoin
The surge in prices and the creation of new bitcoin millionaires can be attributed to the fact that the cryptocurrency market has left behind the bearish conditions of 2022. These were characterized by high inflation and the fallout from incidents such as Icollapse of FTX. Bitcoin has managed to maintain the gains triggered by the lower inflation rate in the United States. In this case, the Federal Reserve is likely to ease its aggressive monetary policy. Indeed, the war against inflation has potentially been won in the United States. Therefore, risky assets such as bitcoin stand out to benefit.
In return, risky assets such as bitcoin benefit. Notably, maintaining the number of bitcoin millionaires remains a challenge given that the current market is subject to uncertainty. Bitcoin is still in volatile conditions that have partly spread since last year.
Along this line, several technical indicators offer mixed signals regarding the future of the asset. For example, bitcoin is facing the first-ever deathcross. This pattern has long been associated with a downtrend. On the other hand, bitcoin may not experience this deathcross, which could signal lasting gains for the fledgling cryptocurrency.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service ofdaily and weekly so you don’t miss any of the essential Tremplin.io!