Even with deregulation, the number of millionaires decreases: The state of the cryptocurrency market under Trump's tariffs

On-chain data reveals an intriguing contradiction that is attracting market attention. Despite rising regulatory optimism, the number of millionaire addresses in cryptocurrencies is decreasing. As NS3.AI points out, the announcement of new tariff policies by President Donald Trump has caused ripples in the market, yet Bitcoin and Ethereum prices surprisingly remain resilient. Behind this phenomenon lies a complex psychological dynamic in the market and a disconnect from actual on-chain activity.

Market Remains Resilient Despite Tariff Announcements

President Donald Trump announced a new universal 10% tariff following a Supreme Court decision limiting emergency powers. The administration shifted its approach from the blocked emergency authority to implementing tariffs through other legal channels. Despite heightened macroeconomic uncertainty, the cryptocurrency market has shown less turbulence than expected.

Currently, Bitcoin trades at around $64,780 (24-hour change -1.79%), and Ethereum at approximately $1,900 (24-hour change -2.26%), indicating that market participants remain cautiously optimistic. This suggests investors may be valuing long-term macroeconomic improvements over political uncertainties.

Decline in Millionaire Addresses Reflects On-Chain Conditions

However, on-chain indicators paint a more complex picture. The number of Bitcoin addresses holding over a million dollars has significantly decreased over the past year. This downward trend is not merely a result of price fluctuations but reflects deeper structural changes in the market. Large holders appear to be adjusting their holdings, leading to a consolidation of positions.

The reduction in millionaire-level addresses suggests that the environment which previously facilitated the accumulation of wealth by individual large investors is weakening. This could mean that the psychological barriers for mid-sized investors to enter the market are increasing.

Limits of Regulatory Optimism and Future Challenges

While optimism about regulatory improvements persists, a gap remains as on-chain wealth growth has not materialized accordingly. This indicates that regulatory easing has improved market sentiment but has not yet translated into substantial investment inflows.

How macroeconomic shocks like tariff policies will impact the market moving forward, and how the structure of on-chain wealth will evolve, are key areas to watch. The apparent contradiction between market resilience and declining millionaire addresses suggests that the current crypto market is driven by multiple conflicting forces.