The number of Bitcoin (BTC) wallets containing 1,000 or more BTC has experienced a growth of almost 3.5% in the past 52 weeks. Additionally, there has been a 75% increase in the number of wallets containing 0.0001 BTC or less.
At first glance, these statistics suggest growth at both ends of the spectrum. However, a closer look reveals that Bitcoin’s middle class, defined as those holding between one and ten BTC, seems to be shrinking.
The data, obtained from BitInfoCharts, illustrates the percentage change in the number of wallets with specific amounts of BTC between October 1, 2023, and September 23, 2024.
The 76% increase in wallets containing less than 0.0001 BTC (equivalent to $6.32 at the time of writing) could imply an influx of new users, but it may also contribute to the decline in the middle-class bracket.
The number of wallets holding between one and ten Bitcoin decreased by 0.35%, while those in the 10 to 100 range dropped by over 3%. The data further reveals that the only category that did not experience growth was the 10,000 BTC and above group.
It is important to note that the wallets mentioned in the data may not necessarily represent individual Bitcoin users, as multiple wallets could be associated with the same individual or organization, while others may be abandoned.
The increase in wallet numbers in the lower tiers could suggest the emergence of relics from sell-offs following recent events such as Bitcoin’s all-time high and the halving.
On the other hand, the decrease in whales holding more than 10,000 Bitcoin aligns with the increase in those holding between 1,000 and 10,000.
Statistically, this indicates that a significant portion of wallets with BTC holdings in the middle range have shifted from the 1 to 100 bracket to near zero. Consequently, a considerable percentage of wallets with BTC worth between $26,542 and $2,654,200 as of October 2023 have reduced their holdings over the past year. However, it’s worth noting that the number of Bitcoin wallets worth $1 million has risen by approximately 25% since the beginning of 2024.