According to COINCU2, there are approximately 425 million crypto users worldwide, with Bitcoin accounting for less than half of that number. Out of the hundreds of millions of people who trade cryptocurrencies and Bitcoin, only six have achieved billionaire status. Henley & Partners' Crypto Assets Report reveals that there are 88,200 crypto millionaires, 182 centi millionaires (worth $100 million or more), and 22 individuals with crypto assets worth $1 billion.
The current decline in Bitcoin and other cryptocurrencies is attributed to various short- and long-term factors, including the context of traditional financial markets, the collapse of large electronic money empires, and increasingly tightened management policies. Many had hoped that the non-dependent nature of cryptocurrencies would help them combat inflation and withstand periods of crisis. However, reality has proven this to be untrue.
The Federal Reserve is raising interest rates at a historically rapid pace to combat inflation, which often weighs on high-risk assets like cryptocurrencies. Additionally, the world's largest cryptocurrency is not immune to the influence of the stock market, the instability in the Russia-Ukraine conflict, inflation, supply chains, and oil prices.
Investors are closely monitoring the actions of countries such as the US, China, India, and Germany as their governments begin to find ways to control cryptocurrencies. Meanwhile, cryptocurrencies continue to experience fluctuations due to a series of hacker attacks and rug-pulls.
The turbulent collapse of stablecoins that affected the UST market and LUNA cryptocurrency has led to the downfall of its partners and investors in May 2022. The situation worsened when the second-largest cryptocurrency market, FTX, suddenly collapsed in November 2022, dragging a series of companies, funds, partners, and investors down with it.
As a result, the market's largest cryptocurrency, Bitcoin, has seen its value decline by more than 60% from its all-time high of $69,000 to just $25,700 currently.
