The number of Bitcoin (BTC) wallets holding 1,000 or more BTC has risen by nearly 3.5% in the past year. Simultaneously, there has been a remarkable 75% surge in wallets containing 0.0001 BTC or less. At first glance, these figures suggest growth at both ends of the wallet spectrum. However, a closer inspection reveals a concerning trend: the ranks of Bitcoin’s middle class—those possessing between one and ten BTC—are diminishing.
The data presented here, sourced from BitInfoCharts, illustrates the percentage change in the number of wallets with varying BTC amounts from October 1, 2023, to September 23, 2024.
**Gains or Losses?**
The staggering 76% increase in wallets holding less than 0.0001 BTC (valued at $6.32 at the time of this writing) could suggest a wave of new users entering the market. However, this influx might also be a factor contributing to the decline observed among middle-class Bitcoin holders.
Continuing from the previous chart, we see the breakdown of wallet increases and their respective BTC holdings over the same period.
Wallets with balances between one and ten BTC have decreased by 0.35%, while those holding between ten and 100 BTC have experienced a drop of over 3%. Notably, the only category that hasn’t seen growth is the elite group of wallets with 10,000 BTC or more.
**Bottom Erosion**
It’s crucial to recognize that the wallets referenced in this data do not necessarily represent distinct Bitcoin users. Many wallets could belong to the same individual or organization, while others may be abandoned.
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The increase in lower-tier wallets might signal a rise in remnants from sell-offs following significant events like Bitcoin’s all-time high and the halving.
Conversely, the decline in whales holding over 10,000 BTC correlates with the uptick in wallets containing between 1,000 and 10,000 BTC.
Statistically, this suggests that a considerable number of wallets in the middle range have shifted from the 1 to 100 BTC bracket down towards near-zero holdings. If this trend continues, a substantial percentage of wallets holding BTC valued between $26,542 and $2,654,200 as of October 2023 have likely reduced their balances over the last year. On a more positive note, the number of Bitcoin wallets valued at $1 million has increased by approximately 25% since the beginning of 2024.
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