The Bitcoin crash has wiped the millionaire status of over 70,000 Bitcoin millionaires in 2022, making Bitcoin a grim prospect for its investors. The Bitcoin bear market has reduced the millionaire status of 70.23% of its investors as per reports by Finbold in the first three quarters of 2022.
Investors in Cryptocurrencies have suffered huge losses as the market cap of cryptocurrencies has fallen by over 1 trillion dollars in 2022. Bitcoin is currently trading at ₹ 13,92,362.38 which is 57.02% lower than its yearly high of ₹ 35,90,707.01 on March 29, 2022.
The rapid decline in the price of the dominant cryptocurrency has resulted in a 58% decline of wallets having cash value of $10 million from 10,587 addresses in November 2021, to 4,342 addresses in 2022.
Bitcoin and Cryptocurrencies have been impacted by numerous problems. The government has increased it scrutiny on digital assets and have brought it under tax slabs of capital gains. Investors can no longer enjoy unaccounted gains. There has been a slowdown in investments globally post the lockdowns over fears of recession reducing the volume of investors participating in investments.
Cryptocurrency exchanges began making the news for negative reasons such mass layoffs in leading cryptocurrency exchanges such as Coinbase and Karen. The Sam Bankman-Fried’s fiasco of the FTX fraud case where the cryptocurrency exchange FTX collapsed as a result of ignoring industry standards and overleveraging dried dirty laundry of crypto exchanges out in the open, shocking people of the casual approach regarding the security of investor funds.
Another interesting scenario was the highly promoted LUNA coin of the Terra Network was delisted by Indian Cryptocurrency exchanges after it fell 100% from its high of $118 to mere decimal cents overnight, dropping $40 billion of investor wealth.
Cryptocurrency is a decentralised electronic currency which is generated and run on blockchain technology. Cryptocurrency exchanges are platforms which allows the trade of cryptocurrency token. The international lockdown during the pandemic saw cryptocurrencies which were existing in the corner of subreddits reach the mainstream and find unprecedented booms.
While whale wallets have suffered from the downtrend of cryptocurrencies, there are reports of retail investors adding whole bitcoin to their wallet is steadily increasing as 2023 begins.
© Vygr Media Private Limited 2022. All Rights Reserved.
