Bitcoin boom: 7.3 million new addresses added in H1 2024

As the first half of 2024 nears its end, the full impact of the cryptocurrency bull market is becoming increasingly evident.

Indeed, after the crypto market endured a protracted period of pressure characterized by depressed prices and high regulatory scrutiny, the false rumors of a digital asset exchange-traded fund (ETF) approval in October 2023 kickstarted their recovery – a recovery that was only strengthened with actual spot Bitcoin (BTC) ETFs, approved in the United States in January 2024.

Finbold research revealed that, by June 11, 2024, the rally generated a significant spike in interest, which led to a major increase in the number of addresses holding BTC.

In fact, at the time of publication, nearly 85 million addresses held at least $1 worth of Bitcoin—at least 1,400 Sats.

Historical snapshots, made available through the use of the web archive tool Wayback Machine, reveal that on January 4 – the earliest 2024 date available – the total number of such addresses stood at approximately 77.5 million.

7.3 million new noteworthy Bitcoin addresses were created in H1 2024

Juxtaposing the two figures reveals that, in just under six months, as many as 7.3 million new Bitcoin addresses were added – 1.2 million each month and 46,000 each day, for a total increase of 9.51%.

The number of BTC millionaires – addresses holding more than $1 million worth of the cryptocurrency – also increased substantially.

During the first half of 2024, the number rose nearly 30,000 from 96,736 to 126,733.

However, the 2024 rise in the number of Bitcoin millionaires reveals an interesting phenomenon.

Research conducted by Finbold throughout 2023 demonstrates that the number of such BTC holders grew by 70,000 in the 12-month period. Additionally, figures analyzed and published in April 2023 demonstrate that the number of Bitcoin millionaires increased by more than 50,000 in the year’s first quarter (Q1).

Given the current trends, 2024 is set to add approximately 10,000 fewer BTC millionaires than 2023, despite the significant enthusiasm and volume generated by the bull market.

Simultaneously, 2023 saw the addition of approximately 23 million new Bitcoin addresses holding at least. $1 worth of the cryptocurrency.

At the pace observed during its first half, 2024 will add only about 60% as many such addresses as the previous year.

Are traders abandoning Bitcoin due to BTC price stagnation?

A possible explanation for the phenomenon is that the first half of 2023 offered a longer period of growth for Bitcoin at an arguably more compelling price as the world’s premier cryptocurrency was recovering from protracted trading near $15,000.

Indeed, though BTC rose to only about $30,000 in the time frame, the climb was more steady and continuous.

Compared to that, the 2024 rise was both more staggering and more brief. Bitcoin reached a new all-time high (ATH) of $73,084 on March 13 – before the end of the first quarter – and has mostly been trading sideways in the rough range between $67,000 and $71,000 since.

A strong move in either direction could likely reignite the skyrocketing in the number of Bitcoin-holding addresses.

A bullish breakout would confirm that BTC has not yet achieved its full potential in 2024, while a price collapse would create an enticing buying opportunity for investors.

Reinforcing the notion is the fact that the total number of such addresses largely stagnated between May 22 and June 11, and the number of BTC millionaires dropped by approximately 2,000.

It is worth noting, however, that a single user can have multiple addresses, meaning that the rise in the total number of addresses does not necessarily fully correspond to the total number of traders.

Simultaneously, the January approval of BTC ETFs in the U.S. may have inverted the logic and may also explain the relatively slow growth compared to 2023.

Major financial institutions that operate the funds – such as BlackRock – may hold vast amounts of BTC associated with numerous investors in a single address.

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