Trump's Re-election Wipes Out 32,647 Bitcoin Millionaires, 18.51% Decline

On November 6, 2024, the re-election of Donald Trump brought a surge in Bitcoin (BTC) investors, creating approximately 11,000 new BTC millionaires. This event generated significant tailwinds that influenced both the stock and cryptocurrency markets for several months. However, the return of Trump to the White House has since had the opposite effect, with a substantial loss of Bitcoin millionaire addresses. Within just one month, 22,000 Bitcoin millionaire addresses were wiped out, marking a significant decline in the number of wealthy cryptocurrency holders.

By March 21, the situation had worsened, with the number of BTC millionaires falling by 32,647 since January 21. This decline represents a 18.51% reduction in Bitcoin millionaire addresses compared to the number present when Trump was inaugurated. The losses averaged 544 millionaires daily, highlighting the rapid and severe impact of political events on the cryptocurrency market.

On January 21, the first Monday after the inauguration, there were 157,563 Bitcoin addresses holding between $1 million and $9.99 million worth of BTC. Additionally, 18,801 addresses held at least $10 million in the world’s premier cryptocurrency. By March 21, the number of wallets with more than $1 million but less than $10 million had fallen to 129,477, and those with more than $10 million declined to 14,240. This resulted in a total change from 176,364 to 143,717 Bitcoin millionaire addresses in just two months. The decline was widespread, affecting all addresses holding more than $1 worth of BTC.

The uncertainty generated by President Trump’s economic policies, particularly his tariff campaign and the escalating global trade war, appears to be the main culprit for the losses. This situation contrasts sharply with the aftermath of the elections, when risk assets were rising, and gold experienced a rare period of decline. By March 2025, gold had reached new highs above $3,000, while Bitcoin struggled to remain above the $80,000 to $82,000 price point, even falling below it on several occasions. Benchmark stock market indices, such as the S&P 500 and the Dow Jones Industrial Average, also showed declines in the year-to-date chart.

The prevailing headwinds have been so strong that even the recent news of the SEC giving up its legal battle against Ripple Labs over the XRP token led to only a brief rally. The loss in the number of BTC millionaires could also be attributed to extensive selling activity and profit-taking behavior among major investors, indicating that Bitcoin may have entered a bear market. This analysis underscores the significant impact of political events on the cryptocurrency market and the potential for substantial losses in a short period.

The Federal Reserve's decision to hold rates in the range of 4.25% to 4.5% adds another layer of complexity to the economic environment. While aimed at managing inflation, these actions also have implications for the cryptocurrency market. The potential for inflationary pressures could further destabilize the market, as investors seek safe-haven assets or alternative investments to hedge against economic uncertainty. This highlights the need for investors in the cryptocurrency market to remain vigilant and adapt to the changing environment as the political and economic landscape continues to evolve.