Table of Contents
main conclusions
Cryptocurrency industry was valued at nearly $3 trillion in 2022, now stands at $800 billion There are 73% fewer Bitcoin millionaires after 2022 bitcoin was at a loss at the start of the year, it is now over 50% The number of investors holding more than 1 BTC jumped 20% as the hurdle became much more achievable In a distant universe, the cryptocurrency market was valued at US $3 trillion. To be precise, this was in November 2021 when Bitcoin was trading at its all-time high of almost $69,000. But then came 2022. Inflation skyrocketed as a result of COVID money printing, the war in Ukraine and supply chain issues, meaning central banks around the world were forced to raise rates to curb a growing crisis. of the cost of living. With cheap liquidity withdrawn from markets, Bitcoin – and cryptocurrency as a whole – felt the pinch. We saw the top 10 cryptocurrencies collapse, one major exchange revealed to be a house of cards with countless other bankruptcies and scandals. The loss was over $2 trillion, with Bitcoin losing three-quarters of its value at the time of writing, trading at $16,800.
bitcoin millionaires
Looking at the on-chain data from bitinfocharts.com, Bitcoin millionaires dropped like flies. Going into 2022, there were 90,000 addresses containing over a million dollars worth of Bitcoin. Today, there are 24,000 – which represents a drop of 73%. “The on-chain data epitomizes what is obvious when looking at a Bitcoin price chart – that the party is over and investors are no longer dreaming of retiring their Bitcoin holdings, at least for the foreseeable future! Nearly three-quarters of Bitcoin millionaires losing that status is perhaps the best data ever to sum up just how bad 2022 was for investors,” said Max Coupland, director of CoinJournal.
Percentage on offer at loss doubles in 2022
Bitcoin’s returns before 2022 have been staggering. As a result, most sourcing was profitable, with only 25% of sourcing being loss-making going into the year. By the end of the year, this had doubled to over 50% – another impressive statistic when considering that Bitcoin was the best performing asset class in the world for the previous decade.
Addresses with more than 1 BTC
On the other hand, with Bitcoin so cheap compared to last year, the number of addresses containing one Bitcoin or more – “whole coiners” as they are known – is at an all-time high, even as the value of the dollar contained in these addresses is right below. Going into 2022, there were over 814,000 addresses holding more than 1 BTC. At the end of the year, that number was over 978,000 – an increase of 20%. As can be seen when zooming in on 2022 in the chart below, there were significant jumps when Bitcoin crashed after the three major scandals of 2022 – the Luna death spiral, the Celsius insolvency and the FTX fraud revelations.
Falling sentiments match falling prices
Perhaps the biggest issue emerging from 2022 is related to these scandals. The cryptocurrency’s reputation has taken a heavy hit, most notably with the shocking fall of FTX and its disgraced former CEO Sam Bankman-Fried. According to a CNBC poll in November 2022, only 8% of Americans now have a positive view of cryptocurrency. Crypto investors have seen similar percentage drops before, of course, just waiting for the market to recover. But this time around, the cryptocurrency is fighting a downturn in the broader economy for the first time in its history. Until now, it was zero (or negative) interest rates and a hot money printer. Now, we have transitioned into a new environment and cryptocurrency investors are feeling the pain. They hope that 2023 could bring a return to prominence and begin to mend the injured asset class’s reputation. If you use our data, we would like to receive a link to https://guiadobitcoin.com.br/. Crediting our work with a link helps us continue to provide you with data analysis research. Research Methodology Address data retrieved on-chain. Price data from Yahoo Finance.
