Crypto Market Resurgence Produces Over 44,000 New Bitcoin Millionaires

After last year bear market which weighed on most cryptocurrenciesbitcoin (BTC) is making headlines again as it reaches new levels, creating a new batch of millionaire owners. This new group of wealthy bitcoin holders capitalized on the market rally in 2023 to join the elite club of crypto millionaires.

According to data compiled by finbold, the number of Bitcoin millionaire addresses as of January 28 stood at 72,483, an increase of 44,399, or 61%, from the January 5 figure of 28,084 BTC millionaire holders. During this period, Bitcoin jumped around 37%.

According to data provided by BitInfoCharts.com, 67,551 different addresses have a Bitcoin balance valued at over $1 million. Additionally, 4,932 addresses held Bitcoin worth more than $10 million as of January 28.

Moreover, taking advantage of the web archiving tool Wayback Machine, as of January 5, 2023, approximately 24,279 addresses owned Bitcoin worth at least $1 million, while 3,805 addresses held Bitcoin valued at over $10 million.

Bitcoin’s rally has also had an impact on holders making money in general. In particular, 60% of holders are making money at the current price while 35% are losing. The remaining 5% broke even.

It should be noted that the new generation of millionaires is a far cry from addresses that suffered losses in last year’s crypto winter. According to Finbold reportin 2022, approximately 71,085 millionaire address holders have been wiped out.

Drivers of New Bitcoin Millionaires

The surge in prices and the creation of new Bitcoin millionaires can be attributed to the crypto market putting behind the bearish conditions of 2022 characterized by high inflation and the fallout from incidents such as the FTX collapse.

Bitcoin managed to maintain the gains triggered by the lower inflation rate in the United States. In this case, the Federal Reserve is likely to ease its aggressive monetary policy since the war on inflation is likely to be won, and in return, risky assets such as Bitcoin stand out to benefit.

Notably, maintaining the number of Bitcoin millionaires remains a challenge given that the general market still faces uncertainty. Bitcoin is still in volatile conditions that have partly spread since last year.

Along this line, several technical indicators offer mixed signals as to the future of the asset. For example, as reported by Finbold, Bitcoin faces the dreaded first-ever week death cross training. The pattern has long been associated with the downtrend.

On the other hand, there is a possibility of Bitcoin undergoing the Gold Cross pattern, which could signal sustained gains for the young crypto. In particular, the golden cross that forms when the 50 days moving average (MA) crosses above the 200-day MA has long been associated with the uptrend.

bitcoin price analysis

At press time, Bitcoin was trading at $23,009 and had gained less than 1% over the past seven days. In 2023, BTC is up 38%.

Finally, Bitcoin’s one-day technical analysis to TradingView is mostly bullish. A summary of the gauges recommends the “buy” sentiment at 15 while moving averages are for a “strong buy” at 13.

Overall, the focus was on Bitcoin’s ability to sustain gains above $23,000, a position that played a key role. resistance level. Analysts believe that holding gains above this position will likely take Bitcoin to around $28,000.

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