According to a recent report by British investment migration consultancy Henley & Partners, the 2024 cryptocurrency bull market has sparked an incredible wealth surge, making over 88K new millionaires and pushing six people to billionaire status.
There are now 172K people with cryptocurrency holdings worth at least $1 million, a 95% increase from the previous year. The noteworthy change occurs in the same year that bitcoin (BTC-USD) hit a new high of $73.8K in March thanks to the introduction of exchange-traded funds for the cryptocurrency in the United States, which have attracted significant institutional and retail capital.
Moreover, the report stated that there are now 325 centi-millionaires, or people whose assets exceed $100 million, a 79% increase in the previous year. Furthermore, investments in bitcoin (BTC-USD) have netted five of the six recently announced crypto billionaires their riches. Michael Saylor, a bitcoin whale at MicroStrategy (MSTR), is no secretive about his personal holdings of roughly $1 billion in cryptocurrency.
However, bitcoin’s (BTC-USD) price has been trading between 23% and 16% below its all-time highs since its August price collapse. The Federal Reserve is preparing to start lowering borrowing costs, which could spur investor demand for riskier assets like Bitcoin. BTC has increased roughly 38% so far this year.
According to Seeking Alpha analyst Dean Popplewell in Bitcoin’s Steady Range: Mt. Gox Impact And Future Outlook, the longer bitcoin remains in this range, the more probable it is for a strong breakout to occur, though it’s unclear which way it will go.
Due to seasonal patterns and possible stock market volatility, fellow SA contributor Florian Grummes is more bearish than bullish.
Regarding Bitcoin: He stated that he anticipates the market’s temporary collapse and that the decline in price of bitcoin from its peak in March will “intensify over the next one to two months.” Presumably This Correction Is Not Finished Yet. After a few weeks of a panic sell-off, patient investors should then have excellent entry opportunities in September or October, or at the latest, following the US election in early November.
Henley & Partners found elsewhere in the report that residents who are crypto-wealthy are increasingly looking for places to call home that are tax-advantageous and friendly to cryptocurrency. Singapore remains the “premier hub” for cryptocurrencies, with its infrastructure and regulatory frameworks leading the way. Hong Kong, which ranked second, has tax laws that are favorable to investors. And third in this competitive landscape is the United Arab Emirates, which also benefits from favorable tax laws.
According to Dominic Volek, group head of private clients at Henley & Partners, the crypto millionaires of 2024 are looking for more than just digital riches; they also want global mobility to match their borderless assets.
The report includes data on wealthy crypto investors compiled by wealth intelligence firm New World Wealth, as well as perspectives from academics, industry experts, and crypto players.
