After last year’s bear market that took a toll on most cryptocurrencies, Bitcoin (BTC) is making headlines again as it reaches new levels, minting a new batch of millionaire owners. This new group of wealthy Bitcoin holders has 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, representing an increase of 44,399, or 61%, from the January 5 figure of 28,084 BTC millionaire holders. During this period, Bitcoin has surged by about 37%.
As per the data provided by BitInfoCharts.com, 67,551 different addresses have a Bitcoin balance valued at over $1 million. Additionally, 4,932 addresses hold Bitcoin worth over $10 million as of January 28.
Furthermore, by leveraging the web archive tool Wayback Machine, on January 5, 2023, about 24,279 addresses owned Bitcoin, equivalent to at least $1 million, while 3,805 addresses accounted for Bitcoin valued at over $10 million.
Bitcoin’s rally has also impacted holders making money in general. In particular, 60% of the holders are making money at the current price while 35% are in loss. The remaining 5% have broken even.
It is worth noting that the new crop of millionaires is far from addresses that incurred losses during last year’s crypto winter. As per Finbold’s report, across 2022, about 71,085 millionaire address holders were wiped out.
Drivers of new Bitcoin millionaires
The surge in price and the creation of new Bitcoin millionaires can be attributed to the crypto market putting behind the bearish conditions of 2022 that were characterized by high inflation and fallout from incidents such as the FTX collapse.
Bitcoin has managed to sustain the gains triggered by the falling United States inflation rate. 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 are standing out to benefit.
Notably, sustaining the number of Bitcoin millionaires remains a challenge considering the general market is still facing uncertainty. Bitcoin is still in volatile conditions that have partly spread from last year.
In this line, several technical indicators are offering mixed signals regarding the asset’s future. For instance, as reported by Finbold, Bitcoin is facing the first ever one-week dreaded death cross formation. The pattern has long been associated with bearishness.
On the flip side, there is a possibility of Bitcoin undergoing the gold cross pattern, which could signal sustained gains for the maiden crypto. Notably, the golden cross that forms when the 50-day moving average (MA) crosses above the 200-day MA has long been associated with bullishness.
Bitcoin price analysis
By press time, Bitcoin was trading at $23,009 and had gained less than 1% in the last seven days. In 2023, BTC is up 38%.
Lastly, Bitcoin’s one-day technical analysis on TradingView is mainly 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 has turned to Bitcoin’s ability to sustain gains above $23,000, a position that has acted as a key resistance level. Analysts opine that holding gains above this position will likely elevate Bitcoin to around $28,000.
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