Bitcoin’s Bottom Gradually Declines As Whale Wallets See A 3% Increase

The number of wallets holding less than $10 in BTC surged by 75% during the same period, while the cryptocurrency's middle class diminished.

Source: koinbulteni.com

Over the past 52 weeks, the number of Bitcoin (BTC) wallets holding 1,000 or more BTC has seen a notable increase of nearly 3.5%. This trend is complemented by a significant 75% surge in the number of wallets containing 0.0001 BTC or less. These statistics might initially suggest that the Bitcoin ecosystem is expanding at both ends of the wealth spectrum, with more users entering the market and existing holders accumulating substantial amounts of BTC.

However, a deeper analysis reveals a more concerning trend: Bitcoin's middle class, defined as those wallets holding between one and ten BTC appears to be shrinking. This shift raises questions about the overall health and accessibility of the cryptocurrency market.

A chart detailing the changes in wallet numbers and their BTC holdings from October 1, 2023, to September 23, 2024, offers a visual representation of these dynamics. The data, sourced from, breaks down the percentage change in the number of wallets by specific BTC amounts during this period. 

While the growth in both high-capacity and low-capacity wallets could indicate increased interest in Bitcoin, the decline in the middle class suggests a potential imbalance. This could mean that fewer individuals are able to maintain moderate holdings, possibly indicating rising barriers to entry or a concentration of wealth among a smaller number of large holders. As the cryptocurrency landscape evolves, these trends warrant close attention, as they may have implications for market stability, accessibility, and the long-term viability of Bitcoin as a widely adopted form of currency.

BTC Gains or Losses

The roughly 76% rise in wallets holding less than 0.0001 BTC (valued at $6.32 at the time of this article) may suggest an influx of new users. However, this increase likely contributes to the decline observed in the middle-class segment. Wallets containing between one and ten BTC decreased by 0.35%, while those holding between ten and 100 BTC fell by over 3%. The only other category that did not experience growth was the 10,000 BTC and above segment.

BTC Erosion of The Bottom

It’s important to recognize that the wallets mentioned in the earlier data do not necessarily represent individual Bitcoin users. Many wallets may belong to the same person or organization, and some could be abandoned. The rise in wallet numbers at the lower tiers might reflect the remnants of selloffs following recent events, such as Bitcoin reaching its all-time high and the halving. Conversely, the decline in wallets holding over 10,000 Bitcoin corresponds with an increase in those holding between 1,000 and 10,000 BTC.

Statistically, this suggests that a substantial number of wallets within the middle range have moved from holding between 1 and 100 BTC down to nearly zero. If this trend continues, a significant percentage of wallets with BTC valued between $26,542 and $2,654,200 as of October 2023 have likely reduced their holdings over the past year. On a positive note, the number of Bitcoin wallets valued at $1 million has grown by approximately 25% since the beginning of 2024.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.