As the crypto winter continues, fewer addresses are now holding bitcoins worth $1 million or more.
Analyst predictions for the price of bitcoin have been released with the start of the new year. A study of the effects of the prolonged 2022 crypto winter reveals that there are 70K fewer BTC wallet addresses with $1 million USD or more in Bitcoin.
The last time Bitcoin (BTC) reached an all-time high price was on November 10, 2021, when it reached $68,789. Since then, the price of Bitcoin has decreased 75% from its all-time high, with the fair market value of the unit now on cryptocurrency exchanges hovering around $16,900.
Although it was just 13 months ago, the investment return is fully dependent on each individual cost basis and whether it results in a loss or a profit at the current price of BTC. Since September, they have continuously fallen below $20,000. As more and more negative news regarding CeFi bankruptcies and DeFi hacking circulates, cryptocurrency prices continue to experience significant write-downs across all markets.
2023 Bitcoin Price Predictions Are Out
Investors are waiting for that solace rally since the price has been tumultuously falling for the last year and since the November 2021 ATH. They had hoped that the strong psychological key support near $20,000 would hold till the start of another bull market before September.
They are only now clinging to the faint chance that they would be able to recover their $20,000 investment. While this is happening, institutional investors with large sums of money looking for high returns on investment (ROI) are ready to boost the fortunes of the BTC markets.
One analyst predicts that the price of bitcoin will drop another 70% to $10,000, according to Mark Mobius, who made his career trading at Franklin Templeton Investments. He grounds his prediction on anticipated increases in interest rates and tighter monetary policy over the coming 12 months.
However, other analysts have upbeat, positive predictions. Prof. Carol Alexander (Sussex University) estimates them to be $50,000 by Q3 or Q4, whereas venture capitalist Tim Draper estimates them to be as high as $250,000 per BTC.
Draper believes that the price of Bitcoin will experience this moonshot movement when more women start using it. He anticipates it around the middle of 2023:
"My assumption is that since women control 80% of retail spending, and only 1 in 7 bitcoin wallets are currently held by women that the dam is about to break.”
While this is happening, the on-chain data shows that the Bitcoin ecosystem is very different from the one that was booming with money and volume during the bubble that burst in 2021.
Dreadful On Chain Data for Investors
In May 2021, while the crypto summer was still burning, the situation was very different. At that time, the value of the Bitcoin market was $1 trillion.
At that time, on-chain data showed that the number of Bitcoin addresses holding Bitcoin valued at $1,000,000 USD or more had surpassed the 100,000 mark.
When compared to the 25,000 level five months previously, that was a 400% rise.
Today, the situation is different. Over the past year, there have been 70,000 fewer Bitcoin addresses holding the gold standard cryptocurrency valued $1,000,000 USD or more. The blockchain had approximately 99,000 millionaire addresses when it was launched in 2022, but by the beginning of 2023, it only had about 24,391 millionaire wallet addresses.
It doesn't necessarily follow that there are less millionaires. They might have dispersed their holdings among more addresses.
Overall though, it can be attributed to the steep decline in cryptocurrency values. Those numbers will immediately increase if they swing back, especially at large institutional funds, thanks to rising interest from professional and retail investors.