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Key Takeaways

• Cryptocurrency trade was valued near $3 trillion coming into 2022, now it’s $800 billion 
• There are 73% less Bitcoin millionaires after 2022
• Bitcoin has pulled again 75% from its all-time excessive fo near $69,000
• 25% of the bitcoin provide was in a loss coming into the year, now it’s over 50%
• Number of buyers holding higher than 1 BTC jumped 20% as the hurdle turned way more attainable

Once upon a time, the cryptocurrency market was valued at $3 trillion. To be exact, this was in November 2021, when Bitcoin traded at its all-time excessive of near $69,000.

But then alongside got here 2022. Inflation sparked as a results of the COVID cash printing, struggle in Ukraine and provide chain points, which means central banks worldwide had been pressured to hike charges to curtail a spiralling cost-of-living disaster.

With a budget liquidity pulled out from underneath markets, Bitcoin – and crypto as a entire – felt the pinch. We have seen top 10 cryptocurrencies collapse, one of many top exchanges revealed to be a home of playing cards and quite a few different bankruptcies and scandals. 

The loss has been higher than $2 trillion, with Bitcoin shedding three-quarters of its worth as on the time of writing, buying and selling at $16,800.

Bitcoin millionaires

Looking at on-chain information from bitinfocharts.com, Bitcoin millionaires have dropped like flies. Entering 2022, there have been 90,000 addresses containing over a million {dollars} price of Bitcoin. Today, it’s 24,000 – that quantities to a fall of 73%.

“The on-chain data sums up what is glaringly obvious from looking at a Bitcoin price chart – that the party is over and investors are no longer dreaming of retirement off their Bitcoin holdings, in the near future at least! Nearly three-quarters of Bitcoin millionaires losing that status is perhaps the best piece of data of all to summarise how ugly 2022 was for investors” mentioned Max Coupland, Director at CoinJournal. 

Percent in provide in loss doubles in 2022

Bitcoin’s returns earlier than 2022 had been astonishing. As a end result, the majority of the provision was in revenue, with solely 25% of the provision loss-making coming into the year. By year-end, this had doubled to over 50% – one other beautiful statistic when contemplating that Bitcoin was the best-performing asset class in the world over the prior decade. 

Addresses holding higher than 1 BTC

On the flipside, with Bitcoin being so low-cost in comparison with final year, the variety of addresses containing one Bitcoin or higher – “whole coiners”, as they’re recognized – is at all-time excessive, even when the greenback worth contained in these addresses is means down. 

Entering 2022, there have been over 814,000 addresses holding extra than 1 BTC. By the tip of the year, this quantity was over 978,000 – that’s a rise of 20%.

As could be seen when zooming in on 2022 on the beneath chart, there have been vital jumps when Bitcoin plunged off the again of the three main scandals of 2022 – Luna’s demise spiral, Celsius’ insolvency and the revelations of fraud at FTX. 

Dropping sentiment matching falling costs

Perhaps the most important downside rising from 2022 is said to those scandals. The popularity of crypto has taken a hammer blow, most notably with the stunning downfall of FTX and disgraced former CEO Sam Bankman-Fried. 

According to a CNBC survey as of November 2022, solely 8% of Americans now have a constructive view of cryptocurrency. 

Crypto buyers have seen related proportion declines earlier than, after all, just for the market to bounce again. But this time, crypto is preventing in opposition to a pullback in the broader economic system for the primary time in its historical past. 

Until now, it had been zero (or damaging) rates of interest and a heat cash printer. Now, we now have transitioned to a new atmosphere, and crypto buyers are feeling the ache. They will hope that 2023 can convey a return to prominence and begin mending the popularity of the wounded asset class. 

If you employ our information, then we might admire a hyperlink again to https://coinjournal.net. Crediting our work with a hyperlink helps us to maintain offering you with information evaluation analysis. 

Research Methodology

Address information taken from on-chain. Price information from Yahoo Finance.