Rise and Crypto-Decadence – In the cryptosphere, millions can be made and broken quite easily, or at least quicklywith the strong volatility courses of Bitcoin (BTC) – and all of this young market. In recent days, the price of BTC has, for example, sharply droppedwhich was not without unfortunate consequences on the fortunes built up during the great crypto bullish movement in 2021.
Back to square one for some Bitcoin (ex-)millionaires?
Since his record price history beyond $68,000 in November 2021, Bitcoin had a hell of a tumbleuntil it even passes briefly under the $33,000on January 24, 2022, i.e. a fall between this high and this last low of almost 52%.
The Finbold media thus published an analysis also showing a decrease in the number of millionaires (in dollars) of Bitcoin. Or at least, and more precisely, of the number ofBTC addresses holding $1 million and more. They went from 105,820 only 80,945 between the months of October 2021 and January 2022, i.e. a decrease of approximately 23.5%.
The fall is even more dramatic for Bitcoin addresses holding for more than $10 million of BTC. They have thus gone from 10,319 at 7,008a decrease of more than 32%.
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In addition to falling prices, liquidations have not helped
Another element may explain the decrease in wealthy BTC owners: the phenomenon of liquidation position. This mechanism can be very violent, especially with leverage effects margin trading.
For example, according to data from CryptoQuant, more than $372 million long positions (long) were purely and simply cutand this for the single day from Friday 21 January. It must be said that, on that day, the passage under the $40,000 support BTC has been particularly violent for the crypto market.
Even though, at the time of this writing, the price of BTC has started to to to sort out above the $37,000it will take a little more for the trend in the number of “millionaire addresses” to reverses again on the rise. And if all this must already not be easy for the owners of bitcoins, imagine a little emotional roller coaster for the owners of Shiba Inu (SHIB) !
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