Analyzing Bitcoin’s Decline During Trump’s Initial 100 Days in Office
The Trump Effect on Bitcoin: A Decline in Wealth
Recent analysis by Finbold has highlighted a significant downturn for Bitcoin (BTC) investors during President Donald Trump’s initial 100 days in his latest term. Despite the wave of optimism following his historic re-election in November 2024, the cryptocurrency landscape has not mirrored the initial enthusiasm.
Pro-Crypto Rhetoric Meets Economic Reality
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President Trump’s return to the political arena was initially marked by a pro-cryptocurrency stance, which fueled Bitcoin to reach unprecedented heights, surpassing $109,000. However, the reality of his presidency has shifted the market sentiment toward a more bearish outlook.
Impact on Bitcoin Millionaires: A Decline in Addresses
A comprehensive study conducted by Finbold reveals that between January 21, the first full day of Trump’s presidency, and April 30, there was a notable 13.22% reduction in Bitcoin millionaire addresses. On January 21, there were 157,563 addresses holding Bitcoin worth between $1 million and $9.99 million. By the end of April, this figure had decreased to 137,694, marking a loss of 19,869 addresses, as reported by data from BitInfoCharts.
High-Value Addresses Experience Deeper Declines
The situation is more severe for addresses holding Bitcoin worth $10 million or more. The number of such addresses fell by 18.30%, decreasing from 18,801 to 15,360, marking a reduction of 3,441 addresses. On average, the first 100 days of Trump’s presidency saw a daily loss of 233 Bitcoin millionaire addresses.
Wider Impact Across Bitcoin Holders
The impact of this market shift extended beyond wealthy investors. The overall number of Bitcoin addresses with holdings exceeding $1 also experienced a decline. On January 1, there were 91 million such addresses, which fell to 88 million by April 30, representing a 3.28% drop, equivalent to nearly 3 million addresses.
Market Resilience Amidst Economic Challenges
Despite these losses, Bitcoin’s unexpected rally in April provided a silver lining. After hitting lows near $75,000, the cryptocurrency rebounded to stabilize just under $95,000. This rally helped mitigate what could have been a more drastic decline in the number of Bitcoin holders.
Uncertainty in Address Ownership
It’s important to note that the exact number of individual millionaires remains uncertain due to the potential for individuals to own multiple wallets, complicating the overall assessment of Bitcoin’s wealth distribution.
In summary, President Trump’s early days in office have coincided with a notable downturn for Bitcoin holders. The cryptocurrency market’s response to his presidency reflects a complex interplay of economic factors and investor sentiment, highlighting the volatility inherent in the crypto space.
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