Bitcoin adds nearly 50,000 millionaires this year so far despite US regulatory crackdown

The number of addresses that hold Bitcoin worth more than $1 million has increased significantly in 2023, reaching almost 50,000, as its price increased despite the US Securities and Exchange Commission’s (SEC) crackdown on the industry and a broader crypto winter.

Bitcoin and altcoins are braving the SEC’s lawsuit  against Binance and Coinbase differently: while increasing regulatory scrutiny on exchanges led to  capital outflows from altcoins, it also fueled Bitcoin’s rising dominance. 

The US financial regulator’s actions have tested Bitcoin’s resilience, but the asset has held  above the $26,000 level despite recent volatility in the crypto ecosystem. 

Also read: XRP price climbs ahead of Hinman document release in SEC vs. Ripple case

Bitcoin creates 47,994 new millionaires in 2023

Bitcoin price sustained above a key level of $25,000 through the first half of 2023. Since the beginning of the year, the asset’s price climbed 59.7% against the US Dollar, according to data from Binance. 

This price increase has been particularly profitable for 47,994 holders of the currency, whose Bitcoin holdings have surpassed the psychological value barrier of one million dollars.  

Based on data from Bitinfocharts.com, on January 5 there were 28,084 BTC-holding wallet addresses worth upwards of $1 million, a number that has increased to 76,078.  This marks an 170% increase  in the number of wallets that turned millionaires with their Bitcoin holdings.

Bitcoin wallet addresses worth $1,000,000 or higher as seen on Bitinfocharts.com

The above chart reveals a significant increase in the number of wallet addresses richer than $1,000,000. This fuels a bullish thesis for Bitcoin despite the regulatory clampdown on the asset by US regulators. 

Bitcoin dominance climbs 19% since the beginning of 2023

Another key metric supporting a bullish thesis for Bitcoin is the rising dominance of the largest asset by market capitalization. 

Bitcoin observed a rise in its dominance as capital flows left other risk assets and altcoins in the crypto ecosystem due to the SEC’s crackdown. 

The overall crypto market capitalization declined from $1.13 trillion on June 5 to $1.09 trillion at the time of writing. In the same timeframe, Bitcoin dominance climbed from 44.21% to 45.88%. Since the beginning of 2023, BTC dominance increased 19%, based on CoinGecko data. 

Declining market capitalization and increasing BTC dominance suggests that capital is being rotated from altcoins to Bitcoin and this is bullish for BTC price recovery in the long term. It supports the thesis of a bullish market sentiment among participants towards BTC.