The crypto crash has seen the number of Bitcoin millionaires decline by more than 75% since November last year.
More than 80,000 Bitcoin investors have had their millionaire status revoked due to the crypto market downturn, but lower prices mean the number of whole coiners is growing.
The number of wallets reporting a balance of more than $1 million currently stands at 26,284, as Bitcoin is barely holding above the $20,000 threshold.
“Crypto is reacting to the same kind of dynamics that are weighing on risk-assets globally,” said Stephane Ouellette, chief executive and co-founder of institutional crypto-platform FRNT Financial. “Unfortunately for some of the mature projects like BTC, there is so much cross-correlation within the crypto asset class it’s almost a certainty that it falls, at least temporarily in a broader alt-coin valuation contraction.”
No crypto investor has fully escaped the downturn. But a small group of industry titans accumulated immense wealth as prices spiked over the last two years, giving them an enviable cushion.
Many of them bought Bitcoin, Ether and other virtual currencies years ago, when prices were a small fraction of their current value.
Some locked in their gains early, selling parts of their crypto holdings. Others run publicly traded crypto companies and cashed out of their stock or invested in real estate.
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.
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.