Even though Bitcoin and the broader crypto ecosystem have suffered a difficult time since the collapse of FTX in November 2022 resulting in the crypto winter, the latest data has shown that the space has recorded remarkable growth in some aspects in 2023.
According to the latest data from crypto analytics provider, BitInfoCharts, the number of Bitcoin millionaires stood at 81,320 on Tuesday morning. This signifies a substantial increase from the 23,795 millionaires reported on January 1 which represents over threefold (over 200%) growth in the number of Bitcoin millionaires in 2023.
Notably, the millionaire wallets are not one-to-one with individual users, as many addresses with more than $1 million in BTC belong to crypto exchanges and financial institutions.
More on the report
To the specifics, the number of addresses holding a minimum of $1 million in Bitcoin sits at 81,320, while addresses with at least $10 million worth of the digital asset amounts to 6,612.
In contrast, on January 5, 2023, the count of Bitcoin millionaires was 28,084. Among them, 24,279 addresses held a minimum of $1 million worth of BTC. Also, just 3,805 addresses possessed at least $10 million worth of Bitcoin at that time, according to the figures that were obtained through a web archive tool, Wayback Machine.
Additionally, the number of whole-coiners (wallets with a balance of at least 1 BTC) has increased slightly since the turn of the year. At the moment, there are 1,018,015 such addresses, a 4% increase from 978,197 on January 1.
What is the reason behind this rise in Bitcoin millionaires?
The surge in Bitcoin millionaires is linked to the rally in the asset’s price, which has propelled the digital currency to around $37,000 after lingering below the $30,000 threshold for most of the year.
Recall that in January, Bitcoin investors and holders grappled with the prevailing bearish crypto market sentiment. Notably, during that time, Bitcoin faced challenges stemming from macroeconomic conditions and fallout from incidents like the collapse of the FTX crypto exchange.
At the moment, Bitcoin’s surge can be attributed to several factors. Notably, the anticipation of the approval of the first Bitcoin spot Exchange-Traded Fund (ETF) has served as a key catalyst for the ongoing rally.
Per a CNBC report, there is potential approval for 12 separate Bitcoin ETF spots over the next week by the United States Securities and Exchange Commission (SEC). Also, Bloomberg ETF analysts claim there’s a 90% chance a spot Bitcoin ETF will be approved by January 10, with many expecting a significant price rally to follow.
What is next?
Bitcoin has been on a remarkable ascent, nearing $38,000 last week and hovering just below $37,000 in the early hours of Tuesday. This price increase reflects Bitcoin’s strong market performance and indicates a larger trend taking shape in the crypto market.
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This bullish trend in Bitcoin price and the increasing number of millionaires in the market is underpinned by strong liquidity trends. According to recent data from crypto market intelligence firm Glassnode, Bitcoin’s available supply has hit a historical low, indicating a tightening supply and a reluctance among existing holders to sell.
Also, open interest in Bitcoin and Ethereum has crossed the $20 billion mark for the first time since the FTX collapse. This is indicative of heightened market activity and interest level.
With all this momentum gathering, analysts have predicted that this could lay the foundation for the potential largest bull run in the asset’s history.
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