Bitcoin has recently crossed the $20,000 mark again, leading to many Bitcoin holders becoming millionaires. According to on-chain analytics firm Glassnode, there are now over 67,000 Bitcoin wallets worth $1 million or more. When Bitcoin’s value goes above $20,000, many of these holders either gain or lose U.S. dollar millionaire status.
In 2022, when Bitcoin’s value fell below $20,000, the number of millionaire wallets dropped. However, in January 2023, when BTC/USD reclaimed the $20,000 mark, those wallets reappeared en masse. On Jan. 14, the wallet cohort increased to 65,000, while the price traded just $1,000 higher, with many wallets containing exactly 50 BTC.
At the time of Bitcoin’s most recent all-time high in November 2021, wallets worth $1 million or more totaled almost 113,000. Both long-term and short-term holders are refusing to cash out, regaining crucial financial buoyancy lost during the 2022 bear market.
According to Glassnode, the number of so-called “wholecoiners” — wallets with a balance of at least 1 BTC — continues to track toward the 1 million mark for the first time in Bitcoin’s history. As of Feb. 28, there are 982,726 such wallets.
The recent price uptick has seen many bitcoins flip from unrealized loss to unrealized profit, suggesting that a significant amount of the BTC supply changed hands in an area between recent multi-year lows and the current spot price. This establishes formidable price support. Furthermore, institutional investors are taking advantage of the dip in Bitcoin prices, with funds flowing back into the asset.
It is clear that Bitcoin continues to draw attention from investors despite its volatility. As more and more wallets cross the $1 million mark, Bitcoin’s overall value will continue to increase. The upward trend has implications for price performance, indicating that those investing in the cryptocurrency now may reap substantial financial rewards in the future.