Bitcoin millionaires increase by 111% as crypto wealth soars

A recent report by Henley & Partners reveals a significant surge in the number of Bitcoin millionaires, indicating the cryptocurrency‘s increasing attractiveness among high-net-worth individuals.

As of July 30, 2024, the number of individuals holding over $1 million in Bitcoin has skyrocketed by 111%, reaching a total of 85,400. This marks a substantial increase from the previous year’s figure, highlighting Bitcoin’s expanding role in wealth accumulation.

Key Figures and Data:

Bitcoin Millionaires: The number of Bitcoin millionaires globally rose from 40,500 to 85,400, representing a 111% increase in just one year. This growth underlines Bitcoin’s appeal to investors seeking substantial returns in the volatile cryptocurrency market.

Overall Crypto Millionaires: Beyond Bitcoin, the total count of individuals with cryptocurrency holdings exceeding $1 million reached 172,300 by mid-2024. This reflects a 95% rise from 88,200 the previous year, showcasing a broader trend of wealth accumulation in the crypto space.

Crypto Centi-Millionaires: The number of individuals with crypto holdings of over $100 million—dubbed “crypto centi-millionaires”—grew by 79%, totalling 325 people. This demographic represents the upper echelons of crypto wealth, highlighting the substantial financial gains possible within the industry.

Crypto Billionaires: The report identified a notable rise in the number of crypto billionaires, increasing from 22 to 28 in one year. Of the six new crypto billionaires, five amassed their fortunes primarily through Bitcoin, illustrating the cryptocurrency’s dominant position in the market.

Market Dynamics and Influences

Price Surge: The value of Bitcoin surged from $26,100 in August 2023 to $63,100 in mid-2024, reflecting a 142% increase. This significant price appreciation contributed to the creation of new crypto millionaires and billionaires, as early and large-scale investors saw their holdings multiply.

Institutional Investment: The launch of spot Bitcoin exchange-traded funds (ETFs) played a crucial role in this wealth surge. According to Dominic Volek, Head of Private Clients at Henley & Partners, the introduction of these financial products attracted substantial institutional capital, accelerating the growth of high-net-worth individuals in the crypto sector.

Inflow Trends: The report highlights a notable spike in institutional inflows, with a single-day inflow of nearly $200 million into Bitcoin products on August 26, 2024. This influx of capital underscores the increasing institutional interest in cryptocurrencies, further driving the rise in crypto millionaires.

The data compiled in the Crypto Wealth Report 2024 spans from July 1, 2023, to June 30, 2024. The analysis utilized a combination of in-house wealth tier models and publicly available data from leading crypto platforms such as CoinMarketCap, Binance, BscScan, and Etherscan. The figures were rounded to the nearest hundred to provide an accurate representation of the wealth distribution within the cryptocurrency sector.

The sharp increase in the number of Bitcoin and crypto millionaires over the past year underscores the growing appeal of digital assets among high-net-worth individuals and institutional investors. As the crypto market continues to mature and gain legitimacy, especially with the introduction of financial products like Bitcoin ETFs, the trend of wealth accumulation in the crypto space is likely to persist, attracting more investors seeking substantial financial gains.