As the number of Bitcoin millionaires has dropped by 80% per year, they are becoming an increasingly rare breed. According to the most recent data from on-chain analytics company Glassnode.
There were 23,245 BTC wallets with a balance of over $1 million as of November 25, according to Glassnode. Compare that to the situation on November 8, 2021, when there were 112,898 “Millionaire” wallets. The total peaked as BTC/USD approached its most recent all-time high of $69,000.
On the other hand, a recent study of Institutional Investors by B2B publisher Institutional Investor’s Custom Research Lab found that, despite the broader market struggles, 62% of those who invested in cryptocurrencies increased their allocations in the past 12 months.
Why Are ‘Millionaire’ Bitcoin Wallets Suffering?
According to data from TradingView, the number of millionaire wallets has fallen nearly 79% over the past year, while the biggest drop for BTC/USD this month was 77%.
Additionally, as the co-founders of the Decentrader trading platform pointed out last week, the huge increase in wallets holding one BTC or more is likely due to exchange clients consolidating their wallets and withdrawing from money in private storage. These reached over 952,000 as of November 27, setting a new all-time high for Bitcoin.
However, Glassnode has demonstrated that even the smallest classes of investors – those with 0.01 BTC or more in their wallet – have seen their numbers increase significantly.
But if we talk about institutional investments, the news is different. According to a survey, 12% of participants said they had reduced their exposure to cryptocurrencies in the past year, indicating that institutional investors are still optimistic about the long-term prospects of digital assets.
59% of investors said they employed or intended to employ a buy and hold strategy, and 58% said they planned to increase their allocations over the next three years.
72% of institutions still believe digital assets are here to stay, reflecting their overall optimistic attitude toward the asset class. However, the majority (54%) predict the market will remain constrained for the coming year, while 12% predict a downward trend.
What to expect?
Long-term Bitcoin investors have recently increased their selling (according to on-chain data), which could lead to another drop in the price of the cryptocurrency. Bitcoin price, at press time, was hovering around $16.4k, after falling 2% in the previous week. The value of the cryptocurrency has fallen 15% over the past month.