Bitcoin Millionaire Numbers See Dramatic Shifts Amid Political Changes
November 6, 2024, marked a significant day for enthusiasts and investors of Bitcoin (BTC) worldwide. The reelection of Donald Trump as President catalyzed the creation of approximately 11,000 new Bitcoin millionaires. This event set off a ripple effect that invigorated both stock and cryptocurrency markets for an extended period.
The Reversal of Fortunes: A Decline in Bitcoin Millionaires
Contrasting the initial surge, the return of Donald Trump to the presidency has led to a downturn for Bitcoin investors. Within merely a month, 22,000 Bitcoin millionaire addresses vanished. Research conducted by Finbold indicates that the decline continued, with the number of Bitcoin millionaires decreasing by 32,647 by March 21. This period has seen an 18.51% reduction in millionaire addresses since Trump took office, equating to an average loss of 544 millionaires each day.
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Bitcoin Millionaire Addresses Drop: A Two-Month Analysis
In a detailed examination, data reveals that on January 21, shortly after the inauguration, there were 157,563 Bitcoin addresses holding between $1 million and $9.99 million in BTC. Concurrently, 18,801 addresses contained at least $10 million worth of the leading cryptocurrency. By March 21, addresses with holdings over $1 million but under $10 million fell to 129,477, while those with over $10 million dropped to 14,240. This resulted in a total reduction from 176,364 to 143,717 millionaire addresses.
It’s crucial to recognize that the number of millionaire cryptocurrency addresses does not directly equate to the number of digital asset millionaires. This discrepancy arises because a single individual might control multiple addresses, and conversely, multiple investors might consolidate their holdings into a single wallet.
Impact of the Trump Administration on Bitcoin Millionaires
The economic strategies under President Trump, notably his aggressive tariff policies, have fostered an environment of uncertainty. This has been a significant factor in the reduction of Bitcoin millionaire addresses. Initially, the election’s aftermath saw an uptrend in risk assets, while traditional safe-haven assets like gold experienced a rare decline.
By March 2025, gold prices soared beyond $3,000, whereas Bitcoin faced challenges maintaining its value above the $80,000 to $82,000 range, occasionally dipping below these benchmarks. Major stock indices, such as the S&P 500 and the Dow Jones Industrial Average, also witnessed declines in their year-to-date performance.
Despite the turbulent market conditions, the recent development where the SEC dropped its protracted legal case against Ripple Labs concerning the XRP token only resulted in a short-lived market rally.
Market Behavior and Profit-Taking Among Bitcoin Investors
The drop in the number of Bitcoin millionaires can also be attributed to significant selling activities and profit-taking trends among prominent investors. These behaviors are indicative of a potential bear market phase for Bitcoin, as highlighted in a Finbold analysis dated March 20.
