- Bitcoin (BTC) has hit its all-time high above $68,000
- Crypto wallets holding millions of USD worth of BTC are declining
As the trading price of flagship cryptocurrency Bitcoin (BTC) fell, so did the number of wallets holding significant amounts of the crypto asset. Bitcoin millionaires were also near the peak during BTC’s all-time high, which has continued to decline since then.
Bitcoin reached its highest trading price of $68,789 while the number of wallets holding over $1 million worth of BTC peaked in November 2021.
At the time the largest cryptocurrency by market cap peaked, there were more than 100,000 wallets containing millions of dollars worth of BTC. The highest point reached by the number of bitcoin wallets totaled 108,886.
Since then, both the BTC price and millionaires’ wallets have shrunk.
Recent data shows that the number of wallets made up of $1 million worth of BTC has fallen below 25,000 wallets. There are currently 24,748 such wallets, down more than 77% from its peak.
Millionaires’ wallets saw the declines in the earlier months of last year. As of June 2022, there were just over 26,000 such wallets.
Bitcoin wallets holding $10 million worth of BTC also saw a drop as there are 3,872 BTC wallets.
Contrasting with the larger holding wallets, the small holding BTC wallets are high, reported hitting their all-time high on Jan. 10.
The increase in the number of small-value wallets suggests that bitcoin investors are not losing interest, while clearly signaling to take advantage of increasing their BTC at low trading prices.
The decline in bitcoin millionaires is also consistent with the falling profitability of the digital asset. As of January 2023, only 51% of Bitcoin investors are making money, a sharp decline since early 2022 when only about a quarter of investors lost money.
During this time, its significant ownership concentration has also decreased. There has been a shift of bitcoin from whales to smaller holders as only 10% of wallets are currently categorized as significant holders. In addition, greater decentralization is proposed as supply is better distributed among market participants.
Bitcoin is currently trading at $17,435, up more than 3% over the past week. According to data from CoinMarketCap, the current price is down as much as 75% from its ATH.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own bank and break away from traditional money exchange systems. She is also fascinated with blockchain technology and how it works.
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