At the moment, Bitcoin – one of the leading cryptocurrencies – is experiencing an unprecedented decline, which negatively affects the entire industry: the reduction in the cost of other currencies, the collapse of Luna, and the dismissal of employees in most large crypto companies (except Binance). In addition, the decline in the value of this currency has a highly negative impact on all Bitcoin investors. If in November 2021, the number of people who owned Bitcoins with an asset valuation of more than 1 million US dollars was more than 108 thousand, today, there are only a little more than 26 thousand. It shows that the number of Bitcoin millionaires has decreased by 75%. For any market, this figure is extremely high.
Details
Bitcoin is a cryptocurrency that has experienced ups and downs throughout its history. The global economic crisis has led to the fact that the value of this cryptocurrency has dropped incredibly today. In November 2021, this reached its all-time high of 69k USD. After that, the value of the currency began to decline gradually. When writing, the crypto asset is worth just over 19k USD.
As you can see, Bitcoin has lost more than 3.5 times in price in just a few months. That is, every investor who invested money in Bitcoin lost not only the possible profit but also reduced the value of the entire asset by 3 times. It is one of the first reasons the number of Bitcoin millionaires has decreased.
With the advent of crypto winter, many enthusiasts say that Bitcoin, despite its colossal capitalization, may burst in the next few months. It leads to the fact that many asset holders seek to get rid of it. Such actions lead to an even more significant decrease in the currency’s value. It is also the second primary reason for the decline in crypto millionaires.
Also, experts note the rapid decline in the “population of whales.” No, we are not talking about marine mammals. In crypto, it is customary to call whales people who own wallets worth more than 10 million USD. In just a few months, their number decreased by 58% (from 10,587 to 4,342 addresses). It is worth saying that whales are essential influencers in the world of cryptocurrencies. Many enthusiasts follow their actions since withdrawing money in one whale can significantly reduce the value of the currency, which means that traders can make good money if they do everything right.
However, the asset’s value fall has led to the emergence of a large number of small investors whose hands are about 1 Bitcoin. This currency is incredibly affordable today, and people who previously wanted to try their hand in the world of cryptocurrencies, but did not want to invest a lot of money in it, have now decided to try their hand.
What is the future of Bitcoin?
Many expectations about how the history of this asset will develop are very different from each other. Optimists such as Alex Mashinsky, CEO of Celsius Network, have recently said that the value of Bitcoin could rise to 100,000 USD before the end of 2022. They explain this by the fact that interest in the crypto industry is snowballing yearly, and the number of small investors is increasing, which means that the currency has every chance to break through the 2021 ceiling.
However, most crypto enthusiasts are preparing themselves for the fact that the value of assets will continue to plummet and reach 10,000 USD. It is worth noting that Bitcoin has experienced such sharp drops in value in the past. So, having reached a peak in 2013, Bitcoin fell in value by 85% in 400 days. Many experts believe that the asset is now following the same trajectory as in the period from 2013 to 2017, which means that shortly the value of this will continue to fall until it reaches 10 thousand US dollars; in the future, Bitcoin should show slow but rapid growth.