As we approach the end of the first half of 2024, the impact of the recent cryptocurrency bull market is becoming more apparent. Following a period of pressure and uncertainty in the crypto market, false rumors of a digital asset exchange-traded fund (ETF) approval in October 2023 sparked a recovery that was solidified with the approval of spot Bitcoin (BTC) ETFs in the United States in January 2024.
According to research by Finbold, by June 11, 2024, there was a significant increase in interest in BTC, leading to a rise in the number of addresses holding the cryptocurrency. Nearly 85 million addresses were found to hold at least $1 worth of Bitcoin, amounting to at least 1,400 Sats. Historical data from January 4, 2024, showed that there were approximately 77.5 million such addresses, indicating an increase of 7.3 million new Bitcoin addresses in the first half of 2024.
The number of BTC millionaires, defined as addresses holding more than $1 million worth of the cryptocurrency, also saw a substantial increase during this period, rising from 96,736 to 126,733. However, the growth rate of BTC millionaires in 2024 appears to be lower compared to 2023, despite the overall enthusiasm generated by the bull market.
In 2023, approximately 70,000 new BTC millionaires were added, with more than 50,000 being added in the first quarter alone. The trend in 2024 suggests that there may be around 10,000 fewer BTC millionaires added this year compared to the previous year. Additionally, while 23 million new Bitcoin addresses holding at least $1 worth of the cryptocurrency were added in 2023, the pace of new addresses in 2024 seems to be slower.
The stagnation in BTC prices and the relatively brief surge in 2024 may be contributing factors to the slower growth in Bitcoin addresses. The price of BTC reached a new all-time high of $73,084 in March before stabilizing in a range between $67,000 and $71,000. A significant price movement in either direction could reignite the growth in BTC addresses.
Despite the slight decline in the total number of Bitcoin millionaires and addresses between May and June 2024, the approval of BTC ETFs in the U.S. earlier in the year may have influenced this trend. Major financial institutions holding BTC associated with multiple investors in a single address could also be a factor in the slower growth compared to the previous year.
