In a remarkable turn of events for Bitcoin, approximately 20,000 new millionaires have emerged this year, bringing the total number of wallets holding at least $1 million to around 110,388. The increase reflects an 18% rise in wealthy Bitcoin holders, signalling a strong performance for the cryptocurrency. The surge in millionaires has been linked to significant price movements, particularly following speculation regarding Jeff Bezos’ rumoured $8 billion Bitcoin investment.
Bitcoin’s price has experienced substantial growth throughout 2024, starting at $42,300 and climbing to $63,591, representing over a 50% increase. Notably, the cryptocurrency reached a peak of $73,000 in mid-March, with a 7.8% rise in September alone. This impressive performance has been fuelled by robust market demand and key financial announcements, including anticipated interest rate cuts from the U.S. Federal Bank.
The positive trends extend beyond just millionaires. The number of Bitcoin wallets holding at least $100 has surged from 19.8 million to 21.6 million this year, while those with a minimum balance of $1,000 increased from 8.9 million to 10.37 million. Additionally, high-value accounts, including those with at least $10,000, rose significantly from 2.72 million to 3.43 million, showcasing broad participation in the Bitcoin market.
As the market continues to expand, Bitcoin’s appeal is evidently on the rise, with more investors benefiting from its increasing value. The growing number of wallets accumulating substantial amounts of Bitcoin underscores the cryptocurrency’s strengthening position within the global financial landscape.
The chair of the US Securities and Exchange Commission, Gary Gensler, has warned of widespread fraud in the cryptocurrency industry, accusing companies of disregarding laws designed to protect investors. He highlighted recent enforcement actions against crypto firms, including Binance and FTX, as evidence of the sector exploiting unwary investors.
Meanwhile, Donald Trump has made a surprising U-turn, becoming an advocate for cryptocurrency. The former president, now seeking a third term, promises to make the US the global centre for crypto innovation and has even launched his own cryptocurrency business, World Liberty Financial. It marks a stark contrast to his previous criticisms of Bitcoin, which he once dismissed as a scam.
As the US presidential elections approach, the future of cryptocurrency regulation is at a critical point. Trump’s pro-crypto stance opposes the Biden administration’s clampdown on the industry. With millions being spent on political donations, the outcome could significantly influence the direction of crypto regulation, both in the US and worldwide.
Donald Trump made headlines on Wednesday by becoming the first US president, past or present, to publicly use Bitcoin. During a visit to PubKey, a cryptocurrency-themed bar in Manhattan, Trump completed a Bitcoin transaction with the help of the bar’s staff, purchasing burgers ahead of a rally in Long Island. His public use of the Bitcoin network has further solidified his engagement with the crypto industry.
This appearance follows his recent support for World Liberty Financial, a new crypto project involving Trump and several of his children. The project, which formally launched earlier this week, plans to issue a governance token called WLFI. Trump’s involvement in the crypto space has grown significantly in recent months, as he seeks the industry’s backing in his third run for president.
Trump has been vocal in his promise to make the US the ‘crypto capital of the planet,’ as he courts the digital asset sector in his campaign. His ongoing efforts to align with the crypto community signal a strategic push to secure their support ahead of the 2024 election.
Early Bitcoin miners from 2009 have recently begun moving their long-dormant holdings, sparking intrigue within the cryptocurrency community. On 20 September, five miner wallets, each receiving 50 BTC as block rewards shortly after the launch of the Bitcoin blockchain, saw their funds being transferred. These wallets, dating back to January and February 2009, are believed to belong to individuals present during Bitcoin’s inception, just weeks after its pseudonymous creator, Satoshi Nakamoto, introduced the protocol.
When mining, the 250 BTC in these wallets had little value. However, today, the total value has skyrocketed to £13 million. Bitcoin first hit $1 in 2011 on the now-defunct Mt. Gox exchange, a pivotal moment in its rise. The sudden movement of these ancient wallets has prompted speculation, with some suggesting the owners rediscovered their old hard drives, while others ponder whether they belong to Satoshi Nakamoto or early adopters like Hal Finney.
The first recorded Bitcoin transaction took place on 12 January 2009, when Nakamoto sent 10 BTC to Finney, who played a key role in Bitcoin’s early development. Now, with these recent wallet movements, many are left wondering about the identity of those behind them, adding another layer of mystery to Bitcoin’s origin story.
Gold has soared to a record high of $2,629 per ounce following the US Federal Reserve’s recent interest rate cut. This surge, which took place on 23rd September, was fuelled by a combination of reduced bond attractiveness and growing geopolitical tensions. With inflation concerns and ongoing conflicts in Ukraine, Israel, and other regions, many investors are turning to gold as a safer asset. Goldman Sachs analysts expect the precious metal to rise further, predicting it could hit $2,700 by early 2025.
Meanwhile, Bitcoin, often dubbed ‘digital gold’, is also experiencing a rise. Following the Fed’s 0.5% rate cut on 18th September, Bitcoin climbed by 8.5%, reaching a four-week high of $64,660. Crypto analysts predict that the cryptocurrency could break new all-time highs by the end of 2024, following its typical seasonal patterns.
While gold’s rise is grabbing attention, some argue that Bitcoin is now dominating investor interest. Peter Schiff, a known advocate for gold, remarked that many are overlooking the significance of gold’s performance, opting instead to focus on digital assets like Bitcoin.
Investor interest in cryptocurrency has surged, with digital asset funds recording their second consecutive week of inflows. A report from CoinShares indicates that global crypto investment products garnered $321 million in inflows last week, slightly down from the previous week’s $436 million. US-based funds accounted for a significant share, attracting $277 million, while Switzerland contributed $63 million—its second-largest inflow this year.
CoinShares attributes this inflow trend to the US Federal Reserve’s recent 50 basis point interest rate cut, encouraging investments in cryptocurrencies and other high-risk assets. As a result, crypto funds experienced a 9% increase in their total assets under management, reaching $9.5 billion in total investment product volumes.
Bitcoin funds were the primary beneficiaries of this trend, seeing inflows of $284 million. Conversely, Ethereum funds continue to struggle, with $29 million in outflows for the fifth consecutive week, primarily driven by persistent withdrawals from Grayscale’s Ethereum Trust. However, Solana investment products have maintained a steady pace, recording small inflows of $3.2 million last week.
In a bid for mainstream adoption and global visibility, cryptocurrency startups have signed approximately 87 sports sponsorship deals over the past three years. Research from data provider CoinGecko reveals that many of these partnerships were forged with European football clubs, with 33 agreements established since 2021. Renowned clubs such as Manchester United and Chelsea have offered valuable exposure to crypto sponsors, especially during high-profile events like the UEFA Champions League and the FIFA World Cup.
The motorsports sector has also seen substantial involvement from cryptocurrency firms. Before its collapse, FTX secured a multi-year deal with the Mercedes Formula 1 team, while Bybit and Red Bull Racing announced a $150 million partnership in 2022. Furthermore, F1 designated Crypto.com as its official digital asset partner in a separate $100 million agreement, highlighting the growing intersection of crypto and sports.
Esports has emerged as another area of focus, with FTX investing $210 million in Team SoloMid in 2021. Other major players, such as Coinbase, have also made similar commitments. Additionally, sports like basketball, competitive combat, baseball, American football, and cricket have engaged with crypto service providers, aiming to reach larger audiences. Notably, most of these marketing collaborations occurred in 2024, spurred by rising crypto prices and increasing Bitcoin adoption.
While it remains challenging to assess the effectiveness of these sponsorships on the cryptocurrency market, recent trends indicate that web3 firms are likely to allocate more resources towards sports marketing in the future.
Chinese Bitcoin miners continue to control a significant portion of the global mining network, holding over 55% despite the country’s outright ban on cryptocurrencies. According to Ki Young Ju, CEO of CryptoQuant, while Chinese mining pools dominate the network, US pools gradually gain ground, managing around 40% of the mining power. The US pools primarily serve institutional miners, whereas Chinese pools cater to smaller miners in Asia.
This continued dominance persists despite China’s blanket ban on Bitcoin mining and trading, implemented in 2021. Even with these restrictions, technological advancements and the decentralised nature of cryptocurrencies have allowed mainland users to circumvent regulations, leading to increased money laundering risks. In response, China is set to amend its Anti-Money Laundering (AML) regulations in 2025 to oversee cryptocurrency transactions better.
The crypto market faces challenges, with Bitcoin miners reporting the lowest revenue in a year during August. Mining revenue fell to $827.56 million, a decrease of over 10.5% from July but a slight increase from the previous year. The number of Bitcoins mined also dropped from 14,725 in July to 13,843 in August, as the cryptocurrency remained around $25,000 for much of the month.
Bitcoin may be on the brink of a major breakout, according to a leading analyst. The cryptocurrency has a history of rallying between 154 and 161 days after its halving event. With the most recent halving occurring 157 days ago in April, analysts believe Bitcoin is within the ideal timeframe for such a surge. It mirrors similar trends from 2016 and 2020, where Bitcoin experienced significant gains after halving.
However, the analyst noted that history doesn’t always repeat itself exactly. Still, this week is a crucial period for potential market movement. Remarkably, Bitcoin has already surpassed expectations for September, traditionally a bearish month, with a surprising 9% rise—its highest-ever gain for this time of year.
Looking ahead, October has historically been a strong month for Bitcoin, with positive returns in nine of the past eleven years. Should the pattern hold, Bitcoin could soon surpass its previous peak of $73,738, needing only a 14.6% rise to reach new heights.
MicroStrategy Inc. has successfully raised $1.01 billion through the sale of convertible senior notes, which it plans to use for purchasing more Bitcoin and redeeming higher-yielding securities. Between 13 and 19 September, the company allocated $458 million from this sale to acquire additional Bitcoin. With approximately $15.8 billion in Bitcoin holdings, MicroStrategy is the largest publicly traded corporate holder of the cryptocurrency, while BlackRock manages the largest Bitcoin exchange-traded fund.
Co-founder and Chairman Michael Saylor has effectively transformed the Virginia-based software firm into a crypto hedge-fund proxy since its initial Bitcoin purchase in 2020. This latest sale of convertible notes marks the fourth such transaction this year, with the 0.625% securities set to mature in 2028. In addition, the company is redeeming $500 million of 6.125% notes also due in 2028.
As of 19 September, MicroStrategy held approximately 252,220 Bitcoin, as reported in a recent Securities and Exchange Commission filing. The firm’s shares have seen a remarkable increase, more than doubling this year, compared to a roughly 50% rise in Bitcoin’s price over the same period.
