Bitcoin wallets are undergoing a transformation—and the middle class is feeling the squeeze. Here’s what we mean:
In the past year, Bitcoin (BTC) wallets holding 1,000 or more BTC have grown by nearly 3.5%.
Meanwhile, wallets with a balance of 0.0001 BTC or less have surged by a whopping 75%. These stats suggest growth at both extremes of the Bitcoin spectrum—but the story gets more interesting when you dig deeper.
A closer look at the data from BitInfoCharts, spanning from October 1, 2023, to September 23, 2024, reveals that Bitcoin’s “middle class”—wallets holding between 1 and 10 BTC—has shrunk by 0.35%.
Moreover, wallets holding 10 to 100 BTC also dipped by over 3%, showing a troubling trend for medium-sized holders.
Also Read: Bitcoin Reaches Turning Point As Holders Hit $10B Milestone
So, what’s driving this shift? While the 75% spike in wallets with tiny balances (less than 0.0001 BTC) could indicate an influx of new users, it may also reflect users selling off holdings, pushing their balances closer to zero.
The decline in wallets with mid-range BTC holdings suggests that many users are either cashing out or consolidating into higher-value brackets.
Joe Burnett, a researcher at Bitcoin financial services company Unchained, recently shared findings highlighting Bitcoin as the best savings tool to prevent the erosion of wealth in a free market.
Interestingly, while wallets holding 10,000+ BTC saw no growth, those with 1,000 to 10,000 BTC increased. It appears that some major holders, or “whales,” are distributing their wealth across smaller wallets while the broader market continues to fluctuate.
On a positive note, Bitcoin wallets worth over $1 million have seen a 25% uptick since the start of 2024. Despite some wallet holders scaling back, the elite players in the Bitcoin ecosystem are still flexing their financial muscles.
This data paints a complex picture: Bitcoin’s top players are expanding, newcomers are trickling in, but the middle class is shrinking—a trend worth watching as the crypto market evolves.
