Bitcoin (BTC) is back in the news, this time as its price soars to new heights, creating a new crop of rich owners despite the fact that most cryptocurrencies were hit hard by the bear market last year. This newly wealthy group of Bitcoin holders seized on the 2023 market rise to enter the exclusive club of crypto billionaires.
Finbold reports that as of January 28, there were 72,483 unique Bitcoin millionaire addresses, a rise of 44,399 (or 61%). Over that time frame, Bitcoin’s value has increased by around 37%.
According to statistics published by BitInfoCharts.com, 67,551 unique Bitcoin addresses have a balance of more than $1 million.
Using the web archive service Wayback Machine, we may establish that as of January 5, 2023, around 24,279 addresses had Bitcoin worth at least $1 million, and that 3,805 addresses held Bitcoin worth over $10 million.
The Bitcoin price increase has also affected holders’ ability to make money in general. Specifically, 60% of holders are profitable at the present price, while 35% are in the red. The remaining 5% are now profitable.
It is important to note that the new millionaires are not located near addresses that suffered losses during last year’s crypto winter. According to Finbold’s research, around 71,085 wealthy address holders died in 2022.
The price increase and the emergence of new Bitcoin billionaires may be linked to the crypto market putting behind it the unfavourable circumstances of 2022, which were defined by high inflation and repercussions from events such as the FTX crash.
Bitcoin has been able to maintain the benefits generated by the declining U.S. inflation rate. Since the fight on inflation is likely to be won, the Federal Reserve is expected to soften its aggressive monetary policy, and as a result, riskier assets such as Bitcoin stand to gain.
Since the market as a whole is still unstable, maintaining the current level of Bitcoin millionaires is difficult. Bitcoin is still experiencing volatile circumstances, which have in part increased since last year.
Numerous technical indicators in this trend are sending conflicting messages about the asset’s future. As reported by Finbold, Bitcoin is now experiencing the first-ever one-week formation of the feared death cross. Bearishness has traditionally been connected with the pattern.
On the other hand, Bitcoin may see the gold cross pattern, which might imply persistent rises for the first cryptocurrency. One well-known bullish indicator is the formation of a “golden cross,” which occurs when the 50-day MA moves above the 200-day MA.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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