30,000 Bitcoin ‘millionaires’ wiped out

The recent Bitcoin price correction has resulted in several casualties, with investors losing significantly. Although cryptocurrency is already making minor gains, millionaire holders have drastically declined in recent months.

According to data acquired by Finbold, between October 2021 and January 2022, the number of Bitcoin addresses holding over $1 million has reduced by 28,186 or 24.26%. In October, the figure stood at 116,139 addresses, to hit 87,953 as of January 2022.

In general, the Bitcoin-rich-list has plunged over the last three months. Wallets holding over $100,000 have dropped 30.04% from 505,711 to 353,763. The number of addresses with $1 million and above dropped 23.5% from 105,820 to 80,945. Wallets holding over $10 million and above registered a drop of 32.08% from 10,319 to 7,008.

At the moment, it is near impossible to determine the holders who might have suffered the losses due to the anonymous nature of Bitcoin.

The drop in the Bitcoin rich list correlates with the asset’s volatility that has been heightened in recent weeks.

The Finbold report highlights some factors contributing to the asset’s ongoing correction.

“A combination of factors such as regulatory scrutiny, turbulent markets, geopolitical unrest, and covid combined with having an adverse effect on the asset’s performance,” according to the research report. “However, despite the volatile start to the year, a number of analysts continue to laud the asset as a hedge against rising inflation.”

Despite the recent Bitcoin price correction, the market is still bullish the asset will likely soar to new levels. The focus is now on the asset’s fundamentals to spur a further price rally.