Bitcoin Dumps 25,000 Millionaire Addresses One Year Into Trump’s Crypto-Friendly Reign

One year into Donald Trump’s presidency, Bitcoin has taken a brutal hit, shedding 25,000 millionaire addresses—wallets holding at least $1 million in BTC—despite a barrage of pro-crypto policies. This 16% drop, from 157,563 to 132,383 by January 20, 2026, raises a glaring question: can even the most crypto-friendly administration tame Bitcoin’s savage volatility, or are smaller holders doomed to get crushed no matter who’s in the White House?

• Massive Loss: Bitcoin lost 25,180 millionaire addresses, a 16% decline in just one year under Trump’s watch.
• Policy Paradox: Despite Trump’s deregulatory push, including crypto in retirement plans and anti-debanking moves, on-chain wealth has shrunk for many.
• Volatility Bites: Post-$100,000 price surge optimism faded as market corrections likely wiped out smaller holders.

Trump’s Crypto Playbook: Big Promises, Bold Moves

When Trump took office in January 2025, the crypto community was riding high on hope. Bitcoin had already blasted past $100,000, fueled by post-election hype after his November 2024 win. The administration wasted no time rolling out policies to cement the U.S. as a crypto powerhouse. One standout executive order allowed cryptocurrencies like Bitcoin to be included in 401(k) retirement plans—think of it as tucking BTC into your nest egg alongside stocks and bonds, a chance for regular folks to build wealth with digital assets over decades. Another move tackled the dirty practice of “debanking,” where traditional banks, spooked by regulatory heat, cut off services to crypto firms, leaving them scrambling for basic financial access. Trump’s order basically told banks to buzz off, easing the chokehold on blockchain businesses.

Then there’s the personnel. Trump nominated Stephen Miran, an economist and digital asset cheerleader, to the Federal Reserve Board of Governors. This wasn’t just symbolic—it hinted at pro-crypto voices shaping monetary policy at the highest level. The Securities and Exchange Commission (SEC), long a thorn in crypto’s side, also got a facelift under new Chair Paul Atkins. Atkins dropped a bombshell by declaring that certain liquid staking models—think stETH, a token tied to staked Ethereum that lets users earn rewards while keeping their assets tradable—aren’t securities. For the uninitiated, liquid staking is a DeFi (decentralized finance) innovation allowing you to lock up crypto for network security and rewards, while still trading a token representing your stake. Historically, the SEC has loomed over such setups with threats of legal crackdowns. Atkins flipped the script, pushing for innovation over litigation.

“We’re committed to keeping crypto innovation in the US,” Atkins stated, signaling a shift from the old enforcement-first mindset.

The Blockchain Association, a major industry voice, couldn’t contain their excitement, labeling Trump’s executive orders a “historic shift” that would “expand consumer choice, empower wealth-building, and reduce operational barriers for blockchain businesses.” Sounds like a crypto utopia, right? But if the policy red carpet is rolled out, why are so many Bitcoin wallets bleeding value? Let’s cut through the hype and get to the messy reality.

Market Reality Check: Volatility Doesn’t Care About Politics

Here’s the ugly truth: Bitcoin’s price swings laugh in the face of political goodwill. Data from Finbold reveals that millionaire addresses peaked at 157,563 around early 2025, when BTC soared past $100,000 on the back of Trump’s election win and inauguration buzz. But by January 20, 2026, that number cratered to 132,383—a loss of over 25,000 high-value wallets, as detailed in a recent report on Bitcoin’s millionaire address decline. Much of the growth came pre-inauguration, with Bitcoin jumping from $69,000 in November 2024 to six figures by January. Smaller holders, those just scraping over the $1 million mark during the rally, likely got obliterated when the inevitable correction hit. Either the market dipped their wallets below the threshold, or they cashed out at the peak, pocketing gains before the floor dropped.

Interestingly, bigger players held up better. Addresses with over $10 million in BTC saw a smaller decline of 12.5%, dropping from 18,801 to 16,453. These whales—deep-pocketed investors or institutions—probably have the resources to HODL through storms or diversify their risk, unlike the smaller fish who get washed away by every wave. What triggered this correction? It’s hard to pin down without real-time 2025-2026 data, but Bitcoin’s history points to familiar culprits: speculative hype fizzling out, macroeconomic pressures like interest rate shifts, or even global crypto sentiment souring after the initial Trump euphoria. Bitcoin’s volatility isn’t new—it’s the same rollercoaster that’s been flipping stomachs since 2009. No executive order can rewrite that code.

Winners and Losers: Is Bitcoin’s Dream Slipping?

This discrepancy stings. On one hand, Trump’s reforms are a middle finger to the traditional financial system, aligning with Bitcoin’s ethos of decentralization and freedom. Ending debanking practices directly attacks the gatekeepers who’ve stifled innovation. Allowing crypto in retirement plans could redefine long-term wealth for millions—if they don’t panic-sell at the first dip. Yet, the loss of 25,000 millionaire addresses shows a harsh divide: wealth is concentrating among those who can afford to ride out the chaos, while smaller holders get squeezed. Does this contradict Bitcoin’s mission of financial sovereignty for the masses? If the blockchain becomes a playground for whales, what’s the point of disrupting the status quo?

Playing devil’s advocate, maybe this shakeout isn’t all bad. Bitcoin maximalists often argue that market corrections purge weak hands—speculators who jump in for quick gains and bail at the first red candle. Historically, every bull run, from 2013’s $1,000 spike to 2021’s $69,000 peak, saw millionaire addresses surge then plummet as hype faded. Glassnode data from the 2021 cycle showed a similar 15-20% drop in high-value wallets post-peak. If this pattern holds, the current dip might strengthen the network by leaving only committed HODLers. But flip that coin: if smaller investors keep getting burned, even under a pro-crypto president, how do we build mainstream trust? Regulatory wins mean squat if Bitcoin’s rep becomes “great for whales, brutal for the little guy.”

Beyond Bitcoin: Altcoins and DeFi Steal Some Spotlight

While Bitcoin struggles, the broader crypto space isn’t standing still. The SEC’s ruling on liquid staking not being a security is a massive boost for DeFi platforms, mostly on Ethereum, where users stake assets to secure the network and earn yields. This could pull capital away from Bitcoin during volatile spells, as investors chase safer or more innovative returns. Ethereum and altcoins fill niches Bitcoin doesn’t—and shouldn’t—touch. BTC is the ultimate store of value, a digital gold for those betting on long-term disruption. But Ethereum’s smart contracts power DeFi apps, NFTs, and more, catering to risk-takers and builders. As a Bitcoin-leaning maximalist, I’ll admit: diversity in this ecosystem isn’t a bug, it’s a feature. Still, if Bitcoin can’t hold its millionaires during a supposedly golden era, it’s a gut check for the king of crypto.

What’s Next for Bitcoin Adoption?

Looking ahead, Trump’s second year in office could bring more policy fireworks. With a Republican-controlled Congress, we might see expanded tax incentives for crypto or even a national blockchain strategy. But personal ventures—Trump and family dabbling in mining ops and branded tokens—risk scandal if conflicts of interest surface. On the market front, retail sentiment is key. Social media chatter on platforms like Reddit and Twitter often shows newbies spooked by volatility, and this dip could deter fresh blood despite regulatory tailwinds. For Bitcoin to go mainstream, it needs stability—or at least the perception of it—for smaller holders. Otherwise, we’re just preaching freedom to an elite choir of whales.

The bigger fight is for decentralization itself. These policies, from 401(k) access to Fed nominees who get it, are steps toward financial sovereignty. They challenge a system built to control, not empower. But Bitcoin’s jagged path—where 25,000 millionaires vanish in a year—reminds us that disruption is messy. Volatility is the price of a market unbound by central planners, and maybe that’s the whole damn point. As champions of effective accelerationism, we push forward, embracing the chaos to build something better. Can Bitcoin balance mass appeal with its untamed nature? That’s the trillion-dollar question.

Key Takeaways and Burning Questions

• What caused Bitcoin to lose 25,000 millionaire addresses?
  Post-$100,000 price corrections in 2025 likely pushed smaller holders below the $1 million mark, either through market losses or cashing out during the peak.
• Are Trump’s crypto-friendly policies making a difference?
  They’ve lowered barriers with moves like 401(k) integration and anti-debanking reforms, but the wallet drop proves policy can’t shield against Bitcoin’s wild swings.
• Why are larger holders less impacted by this decline?
  Whales with over $10 million in BTC saw a smaller 12.5% drop, likely due to deeper pockets and the ability to hold or diversify through turbulence.
• How does wealth concentration affect Bitcoin’s mission?
  If smaller holders keep getting crushed while whales endure, it risks turning Bitcoin into an elite asset, clashing with its goal of financial freedom for all.
• Can altcoins help stabilize the crypto space during Bitcoin dips?
  Possibly—platforms like Ethereum offer DeFi yields and innovation, drawing capital when Bitcoin stumbles, though they come with their own volatility risks.
• What does this mean for Bitcoin’s long-term adoption in the U.S.?
  Regulatory wins boost institutional interest, but persistent volatility could scare off retail investors, slowing the path to mainstream trust and use.