The number of Bitcoin wallets holding 1,000 BTC or more has increased by nearly 3.5% over the past 52 weeks. This growth was accompanied by a 75% increase in the number of wallets holding 0.0001 BTC or less.
On the surface, these numbers show growth at both ends of the spectrum. However, a closer look shows that Bitcoin’s “middle class”—those holding between one and ten BTC—appears to be shrinking.
Chart illustrating the increase in the number of wallets and the amount of BTC they hold from October 1, 2023 to September 23, 2024, categorized by total BTC | Source: Google
This data, extracted from BitInfoCharts, shows the percentage change in the number of wallets holding specific amounts of BTC from October 1, 2023 to September 23, 2024.
Growth or decline?
The number of wallets containing less than 0.0001 BTC (worth $6.32 at the time of writing) increased by about 76%, which could indicate an increase in new users, but could also partly explain the shrinking middle class.
The chart further illustrates the increase in the number of wallets and the amount of BTC they hold from October 1, 2023 to September 23, 2024, categorized by total BTC | Source: Google
The number of wallets holding between one and ten Bitcoins fell by 0.35%, while those in the 10 to 100 BTC range fell by more than 3%. The only other category that did not grow, according to the data, were wallets holding 10,000 BTC or more.
Bottom erosion
It should be noted that the wallets mentioned in the above data do not necessarily belong to individual Bitcoin users. Many wallets may be associated with the same individual or organization, and some may be abandoned wallets.
The increase in the number of wallets at lower levels could indicate the emergence of wallets involved in sell-offs following recent events such as Bitcoin's historic price peak and the halving event.
On the flip side, the decrease in the number of “whales” holding more than 10,000 Bitcoins is matched by an increase in those holding between 1,000 and 10,000 BTC.
Statistically, this suggests that a significant portion of wallets with an average BTC holding have dropped from the 1 to 100 BTC range to near zero. If true, a significant portion of wallets with holdings between $26,542 and $2,654,200 in October 2023 have reduced their holdings over the past year. On the bright side, however, the number of $1 million Bitcoin wallets has increased by about 25% since the start of 2024.
