Bitcoin’s surge creates 70,000 new crypto millionaires, raising the total to 241,700

Bitcoin’s record-breaking rally has created 70,000 new crypto millionaires in just the past 12 months, raising the total number of crypto holders with at least $1 million in assets to 241,700. That’s up 40% from last year, and it’s putting serious pressure on the traditional economy.

The number comes from a fresh report by Henley & Partners and New World Wealth, who say the ongoing surge in crypto wealth has unlocked hundreds of billions of dollars in potential consumer spending, mostly driven by Bitcoin’s nonstop price climb.

The breakdown is even more shocking. There are now 450 people in the world who each hold at least $100 million in crypto. And 36 individuals have crossed into billionaire territory, sitting on crypto holdings worth nine digits.

All of this is happening as Bitcoin smashed through the $125,000 mark on Monday before settling near $122,000. The reason behind this boom? A combination of the U.S. dollar’s weakness, investors hedging against rising deficits, and more favorable regulations under the Trump White House. Traditional financial institutions have also jumped in, pushing the total crypto market cap beyond $4.3 trillion—that’s $2 trillion more than it was three years ago.

Economists track wallet spending habits as wealth grows

Philipp Baumann, who runs the crypto trading firm Z22 Technologies, said Bitcoin is becoming “the foundation of a parallel financial system,” adding that it’s no longer just about betting on fiat gains. “It’s the base currency for accumulating wealth,” Philipp said. This shift has also changed how people spend after hitting it big. But since this new class of crypto-rich is still pretty recent, researchers are only beginning to understand how they behave financially.

A group of six economists tried to figure it out by analyzing wallet activity tied to exchange transfers. Darren Aiello, Mark Johnson, and Jason Kotter from Brigham Young University, Scott Baker from Northwestern, Tetyana Balyuk from Emory, and Marco Di Maggio from Imperial College London discovered that for every $1 in crypto gains, investors typically spend 9.7 cents. That’s more than twice what’s normally seen with increases in home or stock values. These younger crypto holders tend to spend more freely compared to older traditional investors.

The economists estimate that $145 billion in extra spending was generated by crypto gains in 2024, making up about 0.7% of all U.S. consumer spending. But the downside is just as big. If crypto prices tank, spending drops fast. “While the massive rise in crypto wealth over the past decade has likely contributed positively to economic growth through consumption spillovers,” the researchers wrote, “this symmetry suggests that major crypto crashes could exert significant negative pressure on the economy as investors cut consumption expenditures.”

Crypto investors were also split into two camps. Some are casual, with crypto being just one part of their portfolios. These investors are more likely to spend when they see gains. The other group is the “all-in” crowd, who have everything tied up in crypto and rarely sell. These investors aren’t driven by price jumps—they’re in for the long haul. Their conviction means their spending habits barely change even when they see huge gains.

Despite all the noise around Lamborghinis and watches, that’s not where most of the money goes. The study found spending happens mostly in restaurants, entertainment, and everyday goods. A previous report by the same group found that real estate is a favorite among the crypto wealthy. When Bitcoin rises, home prices in crypto-heavy counties go up faster—0.46% more than in areas with fewer crypto holders.

Borrowing problems hit crypto wealthy despite high holdings

Not everyone is eager to cash out, even with prices flying. Tad Smith, who used to run Sotheby’s and now works at 50T Funds, said most of the wealthy investors he knows are still holding tight. “They want to be fully invested because this is the moment they’ve been waiting for,” Tad said. While some long-time holders—known as “whales”—may be selling small chunks, the majority are actually doubling down and buying more. He said many are older now, with kids and families, so their priorities have shifted. “In the last big cycle, they were younger,” Tad said. “Now, many of them have kids, and they have a growing family to think about. So their lifestyle choices are different.”

Even though their wallets are loaded, buying a house has been a headache for many. Zac Prince, who leads GalaxyOne, the trading arm of Galaxy Digital, said it’s still tough to borrow against crypto. “Today, if you want to borrow against your crypto, there are relatively limited options,” Zac said. He said he’s heard “countless horror stories” from people worth millions who got turned down for mortgages by banks because their wealth is tied up in crypto.

That could be changing. Bill Pulte, the director of the FHFA, has ordered Fannie Mae and Freddie Mac to start looking at crypto assets when reviewing mortgage applications. That means wealthy holders won’t have to sell to unlock cash. Zac believes this will drive more spending. “The strategy of ‘buy borrow die’ has been around for a long time,” he said. “The problem is crypto investors haven’t been able to access borrowing.”

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