The Surge in Bitcoin Millionaires Marks a Threefold Increase In 2023

Unless you’re very lucky, it’s unlikely you’ll make life-changing sums of money by investing in Bitcoin. Versatility is extremely common in the cryptocurrency space, and the downturns can sometimes be severe, meaning you could lose more than you started with. There’s no way to become a millionaire overnight, but there are a few things you can do to increase your chances of reaching profitability, such as pursuing a dollar-cost averaging strategy by investing weekly or monthly, regardless of the current Bitcoin price. The past is the past, so you need tomorrow’s gains. 

Investors prefer a liquid asset like Bitcoin, which can be quickly and easily converted into cash. Demand increases as Bitcoin gains awareness or its utility increases. Even if it’s volatile, Bitcoin offers good long-term growth prospects, offering protection against inflation. This year, we’ve witnessed a rise in the number of Bitcoin addresses accommodating more than $1 million, a 237% increase in the past 11 months. As of November 13, 2023, there are roughly 81,925 Bitcoin wallets; these holders have enough cryptocurrency to be ranked as major players. 

These Bitcoin Wallets Aren’t Owned by Individual Investors 

There’s a practical limit on the number of Bitcoins that can be stored in a wallet, largely determined by the size of the transaction files created when cryptocurrency is sent and received. When Bitcoin can’t be efficiently handled by the software used to store it, it’s necessary to find a new wallet. The data isn’t linked to an identity, but it’s possible to trace someone’s pseudonym. Satoshi Nakamoto is regarded as the top holder of Bitcoin in 2023, owning $1.1 million tokens in 22,000 different addresses, so the Bitcoins aren’t stored in one address.  

It’s hard, if not impossible, to say for sure who has the most Bitcoin. The only thing we know for certain is that the number of millionaire wallets has tripled this year, a considerable portion of which belong to crypto exchanges and financial institutions. The ecosystem is still dominated by large and concentrated players, yet the profits are expected to fall inordinately to a small number of players due to Bitcoin’s intrinsic concentration. You should work with a professional portfolio that’s 60% Bitcoin and 40% Ethereum, as it ensures a good risk-adjusted return. 

Bitcoin has witnessed a remarkable surge in whale transaction volume, so it shouldn’t come as a surprise the number of whalecoiners has increased this year. A whale is a term commonly used to describe an individual or an organization that has a substantial amount of cryptocurrency (the exact threshold isn’t clear). The number of Bitcoin whales has increased slowly but surely since the start of the year, highlighting an accumulation trend. When whalecoiners buy or sell large amounts of Bitcoin, it engenders powerful fluctuations in the crypto market and influences others’ trading decisions.  

Bitcoin Is Currently Changing Hands For $ 36,842.45

The Bitcoin price is $ 36,842.45, a change of -0,61% over the past 24 hours, with a circulating supply of 19.54 million. Its value is, in essence, affected by the market’s demand, its supply, competing cryptocurrencies, availability, and investor sentiment, to name a few. Other factors that could influence prices are halvings and token burns. A halving event reduces the rewards earned by miners, lowering the available amount of new supply. The next event is expected to take place in April 2024; its impact is often underestimated. Token burning involves sending Bitcoin to a wallet with no known private keys, leading to increased demand and higher prices. 

Spot Bitcoin ETFs can indirectly affect the price of cryptocurrency in several ways. For example, spot Bitcoin ETFs can attract investment flows from a broad range of consumers who want exposure within their brokerage accounts. The Securities and Exchange Commission may be getting closer to a decision regarding approval, yet it’s important to keep in mind that the process is complex, so we can only infer just how close the industry is to receiving an answer. According to Bloomberg ETF analysts, namely James Seyffart and Eric Balchunas, the SEC has a window to approve all fillings. 

Bitcoin Whale Tracking Is Possible as The Blockchain Is a Public Ledger

Monitoring the wallets of Bitcoin whales matters in terms of successful trading and portfolio management. To be more precise, it allows you to pinpoint market sentiment and make well-informed decisions based on bearish/bullish movements. To track the wallet of a whalecoiner, identify the wallet, obtain in-depth data from on-chain transactions, and translate the data into useful information. The Bitcoin blockchain is a public ledger, and while all the transactions are recorded publicly, user identities remain private. Information can be easily obtained; it’s also accessible to people who don’t have any cryptocurrency. 

The movement of big amounts of Bitcoin from an exchange to a whale address means the investor has no intention of selling in the future. On the contrary, if the whale moves a significant amount of Bitcoin from a self-custody wallet to an exchange, they’re looking to sell. To get your hands on this information, use a blockchain explorer, which enables you to search for real-time and historical data. Some analytical firms break down live transactions, so it’s worth paying close attention. Prominent investors can manipulate the cryptocurrency market, creating turbulence or confusing smaller players. 

The Takeaway 

Bitcoin has unlocked new possibilities and created affluent individuals, many of whom are millionaires. Getting rich is anything but easy. The path to affluence is riddled with meticulous investment strategies, well-timed decisions, and a little bit of luck. The number of Bitcoin millionaires reflects the digital asset’s growing acceptance, but despite the positive attitude regarding the value and future prospects of Bitcoin, analysts believe a spot Bitcoin ETF approval could launch in the next bull run. An approval would be positive for the cryptocurrency industry. 

If you’re a person of normal risk tolerance, the outlook of the cryptocurrency market isn’t very appealing, so it’s recommended to keep most of your money in reliable investments. Maybe you have your heart set on Bitcoin. In that case, exercise diligence and be ready for volatility.