Satoshi Nakamoto Drops to 18th Richest: Implications of BTC's 30% Slide

The recent decline in Bitcoin (BTC) prices has led to significant changes in the wealth of cryptocurrency's creator, Satoshi Nakamoto. A decrease of over 30% in BTC's value has resulted in large unrealized losses. This article explores how these fluctuations may impact political influence in the upcoming midterm elections.

Key Takeaways

The drop in Bitcoin's price reduced Satoshi Nakamoto's holdings from $137 billion to $95 billion, resulting in an unrealized loss of over $43 billion.
Investment commentator Peter Schiff suggests that ongoing losses could diminish the influence of crypto donors in the midterm elections.
Despite the market correction, Bitcoin remains up 400% from the lows of the 2022 bear market.

Satoshi Nakamoto

The Wealth of Satoshi Nakamoto

Satoshi Nakamoto, the anonymous creator of Bitcoin, has reportedly faced about $43 billion in unrealized losses after the recent market downturn. Nakamoto's holdings consist of 1.096 million BTC, a figure that has not changed over the years. At October's peak price of $126,000 per Bitcoin, these holdings were valued around $137 billion, positioning Nakamoto among the top ten richest entities in the world.

However, the Bitcoin price has fallen more than 30% to approximately $86,000, causing Nakamoto's net worth to decrease to $95 billion. This significant reduction means Nakamoto is now the 18th wealthiest "person" globally, just above Mukesh Ambani, valued at $92.5 billion, and below Michael Dell, with a worth of $97 billion.

Satoshi Nakamoto Source: Arkham

The Year of Wealth Creation

Despite the recent decline, Bitcoin's performance over the past year has been remarkable, increasing by 400% from its lows of $16,000 in the 2022 crypto winter. A report from Henley & Partners noted that as of June 30, when the price was around $110,000, there were approximately 241,000 crypto millionaires, most of whom owe their wealth to the Bitcoin surge.

In this group, more than half—145,000 individuals—attribute their millionaire status specifically to Bitcoin. The number of Bitcoin millionaires rose by 70% compared to the previous year, with around 17 individuals achieving billionaire status and 254 centi-millionaires stemming directly from their BTC investments. However, if they did not sell during the recent downturn, their net worth might have decreased by 30% or more.

Satoshi Nakamoto Source: Henley & Partners

In light of this substantial wealth, many influential figures are becoming more actively engaged in promoting Bitcoin and cryptocurrency-friendly policies.

The Intersection of Wealth and Political Influence

Prominent crypto advocates, such as the Winklevoss twins—founders of the Gemini exchange—are increasing their support for lawmakers who favor pro-crypto legislation as the U.S. midterm elections approach. Conversely, veteran Bitcoin critic Peter Schiff has warned that if the market correction persists, the diminished wealth of crypto donors could impact their political clout in Congress. He remarked, “Once political support is gone, the bubble will deflate even faster.”

Satoshi Nakamoto Source: X

According to data from Glassnode, current key levels to analyze include the True Market Mean at $81,300 and the Realized Price at $56,000. The possibility of a sustainable recovery in risk assets like cryptocurrency remains uncertain in the current macroeconomic environment.

Satoshi Nakamoto Source: Glassnode