How Did Bitcoin Turn Rags into Millionaires in 2023?

YEREVAN (CoinChapter.com) — The number of Bitcoin millionaires has surged 237% — from just under 23,800 to nearly 82,000, according to BitInfoCharts. Those who bought Bitcoin during the said period include individual investors and institutions such as crypto exchanges.

Additionally, the number of “whole-coiners,” entities that hold at least 1 BTC, has risen above 1 million. This slight increase aligns with the broader Bitcoin accumulation, indicating whales have bought the cryptocurrency during its 120% price rally to around $39,000 this year.

Simply put, these investors are confident about Bitcoin continuing its yearlong bullish momentum.

Long-Term Bitcoin Holders Are On Rise, As Well

Bitcoin holders who have maintained their assets without moving them for over three years now make up 40% of all holders, reaching an all-time high for this statistic. In other words, these ‘HODLERS‘ steadfastly retain their positions, signaling their long-term bullish outlook.

However, newer long-term holders, who acquired Bitcoin during the bear market, have shown signs of unease​​. The chart below shows how many Bitcoins were moved after not being touched for at least 5 years (red wave) and 90 days (yellow wave).

The latter spiked to 84,000 on Nov. 9, while a high number may express eagerness to liquidate their portfolios.

Why is Bitcoin Millionaires Accumulating BTC?

Investors have adopted a long-term view, accumulating more Bitcoin with expectations of future appreciation. The market’s recovery phases, combined with anticipation of regulatory advancements like Bitcoin ETFs and speculations around its upcoming halving, have motivated this increase in high-value Bitcoin holdings.

Additionally, the Bitcoin supply on exchanges has waned since July 2021, standing at 2.05 million BTC on Nov 13.

Draining exchange supply confirms wallets’ determination to HODL in anticipation of higher returns.