January 17, 2023

BTC Millionaire Wallet Drops 80% In the Year of BTC Price Bear-Market

The number of Bitcoin millionaires falls by 80% yearly; they are becoming a rarer species.

One year, 90,000 fewer million-dollar BTC wallets. The recent drop in the value of cryptocurrencies has caused Bitcoin billionaires financial stress. This is another sign of how far the cryptocurrency market has fallen since Bitcoin’s most recent all-time high. If you are interested in investing in Bitcoin, you must trade it in a reputable trading platform like BitQZ App.

Compare this to November 8, 2021, when the number was the highest, and the BTC/USD exchange rate was close to its all-time high of $69,000. At that time, 112,898 wallets were worth at least a million dollars each.

Some Bitcoin owners sold small amounts at different times during the bear market. Because of this, the prices of these addresses have gone down along with the cost of Bitcoin.

Also, the co-founders of the trading suite Decentrader pointed out this week that the massive rise in wallets with 1 BTC or more is likely because exchange users are moving their money from public storage to private storage and consolidating their wallets.

Even so, Glass node shows that even the most minor groups of investors, like those with at least 0.01 BTC in their wallets, have grown over the last few months.

But the numbers show that the number of addresses with a balance higher than zero has decreased since November 18. This is an unusual change from a pattern that has not happened since April 2021.

Bitcoin’s price has decreased for more than a year since it hit its all-time high of $69,000 in November 2021. Because of how bitcoin prices have changed, investors have lost up to 77% of their initial capital. 

How much lower can BTC/USD go?

Experts and people who invest in Bitcoin have known for a while that the next bear market for the most prominent cryptocurrency will begin around 2022.

After starting the year at around $46,000, a record high, the exchange rate between Bitcoin and the US Dollar hasn’t given anyone any comfort and has since dropped to levels not seen since November 2020.

Because of this, the pair is at its lowest level ever for a bear market. Since Bitcoin has fallen almost 77% from its most recent high, it might only be able to fall a little more. This time, things might turn out differently. A look at what some of the best-known experts in the cryptocurrency industry think Bitcoin’s bottom might be.CryptoBullet is “comfortable to buy” at its current price of about $16,000.

A social media star still believes in a theory first put forward in 2022. The key to the theory is a specific on-chain indicator. Cumulative Value Days Destroyed (CVDD), which was made by CryptoBullet, continues to give helpful information about possible bottoms in the BTC price.

CVDD keeps track of how many “held” days a coin has when it is moved to a new wallet. The analytics site Woobull calls this number a “calibration factor.” To find it, divide the total age of the market by 6 million.

CVDD is often a very important dividing line when looking at old data. If the same thing happens this time, people who buy BTC/USD have the best chance of making money.

“Could it go down even more? Of course, it is possible. If another cryptocurrency company goes bankrupt or something similar happens, $BTC will fall below CVDD, but the difference won’t be that big. Most of the downward movement has stopped.”

This is a graph with notes about the Bitcoin Cumulative Value Days Destroyed (CVDD). The first sources were CryptoBullet and Twitter. For Filbfilb, the “worst case scenario” costs $6,500.

Someone with a lot of experience in the cryptocurrency market is always thinking about how hard the bears might attack this time.

Filbfilb, the co-founder of the trading suite Decentrader, recently said that Bitcoin’s exchange rate could reach $10,000 around the new year if the economy keeps worsening. But that was before the FTX scandal, and the fact that it worsened the bear market has made him change his mind.

Filbfilb and Philip Swift, another company co-founder, did a webcast in which they talked about possible bottoms as places with many bids. A long “ladder” of bids is just a bit lower than the spot price and mostly between $12,000 and $14,000. Prices might rise or fall. On the other hand, the real help could be as low as $6,000.

About the author 

Kyrie Mattos

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