30,000 Bitcoin Holders Lose Millionaire Status Following Market Crash

Thousands of new bitcoin millionaires were added this past year after the multiple rallies the digital asset saw. At its peak, it only required 14.5 bitcoins for a holder to be a BTC millionaire, much lower than it had ever been in the past. Due to this, the number of bitcoin millionaires rose quickly and tens of thousands of new millionaires were added to the tally.

Now, however, with the recent price crash, a lot of bitcoin millionaires have lost their millionaire status. Given that the digital asset has lost almost 50% of its all-time high value, the number of millionaires has dwindled greatly in a short period of time.

There Are 30,000 Less Bitcoin Millionaires

When bitcoin hit its $69,000 all-time high, the number of bitcoin millionaires shot up quickly. For the first time, there were over 108,000 BTC millionaires given the low number of coins required to reach the millionaire status. All was well for a while and these 108,886 addresses kept their millionaire status. That is until the market crash that began in December 2021 and carried well into January of the new year.

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Bitcoin price chart from TradingView.com

BTC trending at $37,000 | Source: BTCUSD on TradingView.com

In the next two months, the price of BTC would suffer greatly and by extension, these bitcoin millionaires would be hit hard. This was exactly the case as about 30,000 BTC were no longer millionaires in the span of two months. At last count, the number of BTC addresses that held at least a million dollars worth of bitcoin had crumbled to 80,409.

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Bitcoin whales with larger balances also suffered due to the crash. These whales who held more than $10 million at the time of the peak were cut down by 40%. The number had fallen from its high of 10,587 to 6,960 as of today.

Who’s Holding? Who’s Not?

With any market crash, there will always be those who scramble to cash out their holdings due to fear of further downtrend. This has been the case with bitcoin. Liquidations did not help matters either as almost $1 billion in liquidations were recorded following the market crash. Nevertheless, there are those who hold their bitcoins through thick and thin, bear market or bull market.

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BTC still possesses one of the highest holder rates in the crypto space. More than half (59%) of all BTC holders have been holding their coins for more than a year, a very impressive number given that the digital asset had touched multiple all-time highs in the past year.

Holder sentiment still remains largely skewed towards bullish and accumulation patterns, especially among whales, are ramping up in recent times. Of the entire bitcoin in circulation, whales hold 10% of that supply. This number is always inching up as more big players enter into the market and try to hold a larger share than their competitors.

Featured image from Live Trading News, chart from TradingView.com

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Bitcoin Millionaires Are Flocking To This North American Tax Haven. But What Do The Locals Think?

Bitcoin has made its own fair share of millionaires and with the recent bull rally, there is no doubt that this number went up drastically. This has led to a number of issues of investors who have made their money off the digital asset, the main one being taxes. A lot of these millionaires have begun to flee to places with less strict tax laws, as well as better weather conditions.

Bitcoin Millionaires Flock To Puerto Rico

A recent report from CNBC documents the movements of bitcoin millionaires towards Puerto Rico and its beautiful islands. The subject of the report, 36-year-old crypto entrepreneur and investor David Johnson, outlines why he moved himself and his entire family to the North American country. For the entrepreneur, the tropical paradise was a big push, as well as the tax breaks offered to those who spend at least 183 days on the island.

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Johnson also noted that the decision to move was also predicated on the fact that his friends had all moved to the same destination. The 36-year-old who lived in New York before the move said there weren’t any of his friends left in what is said to be one of the most expensive cities in the world as they had all moved to Puerto Rico.

“That’s where all my friends are. I don’t have one friend left in New York, and maybe the pandemic accelerated this, but every single one of them has moved to Puerto Rico,” Johnson told CNBC.

In addition to offering tax breaks to those who spend a significant amount on the island, residents are also allowed to retain their American passports.

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Locals Not Feeling The Love

Puerto Rican locals are not exactly happy about seeing the move to the tropical paradise. This has less to do with the people coming in and more to do with the fact that the locals themselves do not qualify for the tax exemptions that these non-Puerto Ricans enjoy.

Residents like Johnson who move in from other American states after making their millions with bitcoin and crypto do not have to pay capital gains on their earnings. However, Puerto Rican citizens are having to pay up to 15% long-term capital gains tax.

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This disparity between locals and non-locals has obviously now been the source of tension between the two groups. These tax breaks which were meant to bring more jobs and investors into the region are now being utilized by residents who are trying to get out of paying capital gains tax.

Additionally, the influx of new wealthy residents is causing property costs to surge. Diaz Fournier of Luxury Collection Real Estate told CNBC that the increased demand has led to prices not seen before. “I’ve been tracking the markets for several years, and I was not expecting this,” Fournier said. “You have properties in Dorado Beach that have been sold for more than $20 million.”

Bitcoin price chart from TradingView.com

BTC falls to $41K | Source: BTCUSD on TradingView.com
Featured image from Wallpaper Flare, chart from TradingView.com

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