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Bitcoin Millionaires Rise By 246% In 2023, Here’s How Many There Are

Bitcoin’s resurgence in 2023 has created wealth for many crypto investors, as there has been a significant rise in the number of Bitcoin millionaires. These Bitcoin millionaires happen to be wallet addresses whose BTC holdings equal $1 million or above. 

Number Of Bitcoin Millionaires

According to data from BitInfoCharts, there are currently 97,497 Bitcoin millionaires. This represents a significant increase from the beginning of the year when the number of wallet addresses equal to $1 million and above stood at 23,795, according to data from Glassnode. 

This development is attributed to the resurgence in Bitcoin’s price this year, with the crypto token seeing over 158% gain year-to-date. At the beginning of the year, Bitcoin’s price stood at just over $16,000. However, as the flagship cryptocurrency’s price began to rise, so did its number of millionaires. 

Further data from BitInfoCharts breaks down these Bitcoin millionaires into two categories. The number of addresses that are greater than $1 million stands at 90,040, while 7,457 wallet addresses hold $10 million or more. 

Meanwhile, other addresses below $1 million have also seen enormous profits. Market intelligence platform Santiment recently reported that 89% of the total Bitcoin supply is in profits. 2024 could be a better year for these addresses, considering that the Bull market is expected to kickstart next year. 

In the meantime, some of these Bitcoin millionaires and persons with significant holdings seem to be taking profits. NewsBTC recently reported how Bitcoin whales had sold around 50,000 BTC which equals to about $2.2 billion. 

Bitcoin price chart from Tradingview.com

About Two Weeks To Go For Spot ETFs

One of the biggest moments for Bitcoin and the crypto industry could come as early as January 10. This is around the period when experts are predicting that the Securities and Exchange Commission (SEC) will approve the pending Spot Bitcoin ETFs, and there is optimism in the air as many actions point to an approval happening. 

Crypto stakeholders have had their eyes fixed on developments revolving around these Spot Bitcoin ETFs. The reason isn’t farfetched, as these funds could unlock fresh liquidity into the Bitcoin ecosystem. Trading firm QCP Capital had highlighted this as the catalyst to Bitcoin hitting its all-time high (ATH) and possibly new ATHs. 

At the same time, people like the former CEO of crypto exchange BitMEX, Arthur Hayes, will be hoping that these ETFs don’t achieve much success as he says they could lead to Bitcoin’s downfall. 

At the time of writing, Bitcoin is trading at around $42,678.76, down over 1% in the last 24 hours according to data from CoinMarketCap.

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Number Of Bitcoin Millionaires On The Rise As Accumulation Continues

Bitcoin millionaires are now a widely understood term. This has grown from the massive surge in the price of the digital asset which has continued to decrease the number of BTC required to be a millionaire. A number of bitcoin millionaires had lost their status when the price of the digital asset had declined. However, as bitcoin is recovering, these millionaires have been growing in number but data shows that the increase in price is not the only driver.

Accumulation Is The Name Of The Game

The price of bitcoin had declined significantly following the Russian invasion of Ukraine. This had seen a considerable number of bitcoin millionaires lose their status. But since then, there have been more investors being added to the millionaires’ list.

Related Reading | Bitcoin Futures Basis Nears One-Year Lows, How Will This Affect BTC?

Santiment notes in a new report that the number of bitcoin addresses had been on a steady increase since the way between Russia and Ukraine had started. Not only had the number of addresses been on the rise but whale addresses have been rising. These addresses which hold between 10 to 100k BTC on their balances which were either existing or new had been able to reclaim their millionaire status.

🦈🐳 The number of #Bitcoin addresses has been increasing since the #RussianUkrainianWar began. Since then, there are 1,629 shark and whale addresses holding between 10 to 100k that are either new or have returned to this millionaire (or above) status. 📈https://t.co/08ytC3aMhW pic.twitter.com/9Ts70gdfHJ

— Santiment (@santimentfeed) April 27, 2022

Usually, the obvious culprit for the number of bitcoin millionaires growing can be a surge in price. This drastically increases the value of the tokens held. However, with the price of BTC now making any significant recoveries recently, there is another reason for this and that has been accumulation.

The chart from Santiment shows that these investors have been accumulating BTC at an accelerated rate. This accumulation had seen a sharp increase at the end of March before falling but the whales are once again picking up momentum as the month of April draws to a close.

So instead of regaining their millionaire status by waiting for the price of BTC to go up, these whales have been buying more coins. This also follows the recent trend of daily active addresses picking up on the network. Network transaction volume is also up in this regard. 

Bitcoin Turning Bullish

Bitcoin had lost its footing at $40,000 earlier in the week. This had caused a stir among bears as they tried to drag down the price of the asset. BTC had continued to hold above its $36,000 support level, serving as a bounce point for its recent recovery.

BTC trading in the mid $39,000s | Source: BTCUSD on TradingView.com

Currently, bitcoin is trading above the 5-day moving average. An indicator that proves that investors are now willing to purchase the digital asset higher than the prices they bought days ago. This can often spell a shift in sentiment for investors but only for the very short term.

Related Reading | Bitcoin Drops To $38K After Amazon Retraction On Accepting BTC Payments

BTC still needs to hold above $39,500 though as this remains a critical spot for it. A failure to secure the price above this point could see the digital asset retest the $35,000 in the coming days before any sign of recovery is registered.

Featured image from Altcoin Buzz, chart from TradingView.com

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30,000 Bitcoin Holders Lose Millionaire Status Following Market Crash

Thousands of new bitcoin millionaires were added this past year after the multiple rallies the digital asset saw. At its peak, it only required 14.5 bitcoins for a holder to be a BTC millionaire, much lower than it had ever been in the past. Due to this, the number of bitcoin millionaires rose quickly and tens of thousands of new millionaires were added to the tally.

Now, however, with the recent price crash, a lot of bitcoin millionaires have lost their millionaire status. Given that the digital asset has lost almost 50% of its all-time high value, the number of millionaires has dwindled greatly in a short period of time.

There Are 30,000 Less Bitcoin Millionaires

When bitcoin hit its $69,000 all-time high, the number of bitcoin millionaires shot up quickly. For the first time, there were over 108,000 BTC millionaires given the low number of coins required to reach the millionaire status. All was well for a while and these 108,886 addresses kept their millionaire status. That is until the market crash that began in December 2021 and carried well into January of the new year.

BTC trending at $37,000 | Source: BTCUSD on TradingView.com

In the next two months, the price of BTC would suffer greatly and by extension, these bitcoin millionaires would be hit hard. This was exactly the case as about 30,000 BTC were no longer millionaires in the span of two months. At last count, the number of BTC addresses that held at least a million dollars worth of bitcoin had crumbled to 80,409.

Related Reading | ‘Bitcoin Rush’: Small-Time Solo Miners Strike Gold With Full BTC Blocks

Bitcoin whales with larger balances also suffered due to the crash. These whales who held more than $10 million at the time of the peak were cut down by 40%. The number had fallen from its high of 10,587 to 6,960 as of today.

Who’s Holding? Who’s Not?

With any market crash, there will always be those who scramble to cash out their holdings due to fear of further downtrend. This has been the case with bitcoin. Liquidations did not help matters either as almost $1 billion in liquidations were recorded following the market crash. Nevertheless, there are those who hold their bitcoins through thick and thin, bear market or bull market.

Related Reading | Anthony Scaramucci Urges Bitcoin Holders To Think Long-Term As Downtrend Won’t Last

BTC still possesses one of the highest holder rates in the crypto space. More than half (59%) of all BTC holders have been holding their coins for more than a year, a very impressive number given that the digital asset had touched multiple all-time highs in the past year.

Holder sentiment still remains largely skewed towards bullish and accumulation patterns, especially among whales, are ramping up in recent times. Of the entire bitcoin in circulation, whales hold 10% of that supply. This number is always inching up as more big players enter into the market and try to hold a larger share than their competitors.

Featured image from Live Trading News, chart from TradingView.com

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Bitcoin Millionaires Are Flocking To This North American Tax Haven. But What Do The Locals Think?

Bitcoin has made its own fair share of millionaires and with the recent bull rally, there is no doubt that this number went up drastically. This has led to a number of issues of investors who have made their money off the digital asset, the main one being taxes. A lot of these millionaires have begun to flee to places with less strict tax laws, as well as better weather conditions.

Bitcoin Millionaires Flock To Puerto Rico

A recent report from CNBC documents the movements of bitcoin millionaires towards Puerto Rico and its beautiful islands. The subject of the report, 36-year-old crypto entrepreneur and investor David Johnson, outlines why he moved himself and his entire family to the North American country. For the entrepreneur, the tropical paradise was a big push, as well as the tax breaks offered to those who spend at least 183 days on the island.

Related Reading | Altcoins Are Encroaching On Bitcoin’s Dominance On Digital Payments

Johnson also noted that the decision to move was also predicated on the fact that his friends had all moved to the same destination. The 36-year-old who lived in New York before the move said there weren’t any of his friends left in what is said to be one of the most expensive cities in the world as they had all moved to Puerto Rico.

“That’s where all my friends are. I don’t have one friend left in New York, and maybe the pandemic accelerated this, but every single one of them has moved to Puerto Rico,” Johnson told CNBC.

In addition to offering tax breaks to those who spend a significant amount on the island, residents are also allowed to retain their American passports.

Locals Not Feeling The Love

Puerto Rican locals are not exactly happy about seeing the move to the tropical paradise. This has less to do with the people coming in and more to do with the fact that the locals themselves do not qualify for the tax exemptions that these non-Puerto Ricans enjoy.

Residents like Johnson who move in from other American states after making their millions with bitcoin and crypto do not have to pay capital gains on their earnings. However, Puerto Rican citizens are having to pay up to 15% long-term capital gains tax.

Related Reading | American Rapper Lil Baby On Holding Bitcoin And Ethereum Over Fiat

This disparity between locals and non-locals has obviously now been the source of tension between the two groups. These tax breaks which were meant to bring more jobs and investors into the region are now being utilized by residents who are trying to get out of paying capital gains tax.

Additionally, the influx of new wealthy residents is causing property costs to surge. Diaz Fournier of Luxury Collection Real Estate told CNBC that the increased demand has led to prices not seen before. “I’ve been tracking the markets for several years, and I was not expecting this,” Fournier said. “You have properties in Dorado Beach that have been sold for more than $20 million.”

BTC falls to $41K | Source: BTCUSD on TradingView.com
Featured image from Wallpaper Flare, chart from TradingView.com