A new wave of Bitcoin millionaires was made after $20K price point
When it comes to Bitcoin (BTC), 20 is the magic number…$20,000, that is. The $20K Bitcoin price has been a significant benchmark for the original cryptocurrency ever since 2017, when the halving event drove the value of Bitcoin past this significant psychological threshold and on to dizzying new heights at the time.
Now, new information from data firm Glassnode demonstrates how every time that BTC/USD crosses the $20K price point, a large number of Bitcoin hodlers either rise to or fall from millionaire status.
To show that it cuts both ways, the BTC price drop below $20K in late 2022 resulted in a rapid and dramatic drop in the number of Bitcoin wallet holders with dollar millionaire status. However, the crypto market recovery in January 2023 saw Bitcoin reclaim $20,000 and a new surge in Bitcoin millionaire numbers.
This phenomenon holds true even if the price shift past $20K is relatively small. On 13 January 2023, BTC was selling for just under $20,000, and around 27,000 wallets had a balance of at least $1 million worth of Bitcoin. Just one day later, on 14 January, BTC's price rose by only $1,000, breaking the $20K mark. That led to the cohort of Bitcoin millionaires more than doubling in size, surging to 65,000. As a reference point, millionaire wallets totalled about 113,000 during Bitcoin's last all-time high in November 2021.
What does this mean for BTC?
The figures shed some light on the patterns and trends of BTC ownership in the crypto community. The fact that the $20K price makes and breaks millionaires shows that a significant number of BTC wallets hold exactly 50 BTC and that they're not cashing out.
Bitcoin hodlers are sticking to their guns and playing the long game, accumulating more and more Bitcoin during market slumps when the original cryptocurrency becomes more affordable.
Although crypto buyers on a budget can buy BTC in fractions, the number of 'wholecoiners', or people with at least 1 BTC in their wallet, has been steadily rising and stands at almost one million individuals.
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