Tripling of Bitcoin Millionaire Wallets in 2023: A Deep Dive into the Crypto Wealth Explosion

Unprecedented Accumulation of Wealth Caused by Bitcoin

In the year 2023, there was a significant shift that took place in the landscape of Bitcoin riches. The number of Bitcoin wallets that store more than $1 million has skyrocketed from 23,795 on January 1 to 81,925 at the end of the year, according to data provided by BitInfoCharts. This is an astounding growth of 237%. This spike is not simply a reflection of the desire of ordinary investors, but it also signals a fundamental change in the attitude that financial institutions have towards Bitcoin. These organizations, who were previously skeptical about cryptocurrencies, are now actively engaged in this industry because they see Bitcoin’s ability to serve as both a medium for the storage of wealth and an investment opportunity that offers significant returns.

The historical setting and the current state of the market

The rise in the number of Bitcoin wallets owned by millionaires is not a unique phenomena. It is a reflection of a larger trend in the market for cryptocurrencies. Comparative data from Glassnode shows that the number of addresses holding more than $1 million in Bitcoin hit its all-time high of 112,573 on November 9, 2021. This figure coincides with the last bull market’s apex, which occurred when Bitcoin achieved its all-time high of $69,000. Additionally, the number of wallets containing at least one Bitcoin, increased by a relatively modest 4% to reach 1,018,015 addresses, up from 978,197 at the beginning of the year. This number represents an increase from the previous year’s total of 978,197.

A Look at the Factors That Are Driving the Increase

The increase in the number of Bitcoin millionaire wallets in 2023 was caused by a number of different variables. One of the most important factors was the general excitement of the market for Bitcoin, which was fueled by an almost 40% gain in its trading price in the previous month. The price of bitcoin went up and down between $36,800 and $37,050, indicating that investors are feeling confident and optimistic. This confidence was further encouraged by the expected acceptance of Bitcoin spot exchange-traded funds (ETFs), with experts from Bloomberg estimating a high possibility of approval. Moreover, this optimism was further fueled by the approval of Bitcoin spot exchange-traded funds (ETFs). This possible change, together with projections of a major growth in Bitcoin demand, provided a fertile ground inside the Bitcoin ecosystem for the creation of wealth.

The Prognosis for the Future

The fact that the number of Bitcoin millionaire wallets will triple in 2023 is indicative of a developing cryptocurrency industry, one in which Bitcoin is becoming more widely seen as a legitimate investment option by both people and institutions. This development may mark the beginning of a new age in the landscape of digital currency, one that is distinguished by more involvement from institutions and an investing climate that is more stable. As the market continues to change, it will be very important to keep track of these patterns and the consequences they have for the larger financial environment.

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Indian Supreme Court Rejects Crypto Petition: Legislative Nature Emphasized

The Supreme Court of India has recently declined to consider a Public Interest Litigation (PIL) that sought to establish a comprehensive regulatory framework for cryptocurrency trading in India. This decision is notable as it highlights the judicial perspective on the legislative nature of cryptocurrency regulations.

Key Details of the Petition and Court’s Ruling

The petitioner, Manu Prashant Wig, currently detained by the Delhi Police, was implicated in a 2020 cryptocurrency case. Wig, accused of defrauding investors in crypto schemes, held a directorial role at Blue Fox Motion Picture Limited. A total of 133 investors, claiming to be victims, filed a case alleging deceit by Wig.

Wig filed the PIL while in custody, ostensibly seeking a regulatory framework for crypto trading in India. However, the Supreme Court, led by Chief Justice D. Y. Chandrachud, determined that the PIL’s true aim was to secure bail for Wig. The court advised Wig to seek legal remedies through appropriate channels and approach a different court for bail matters.

The Supreme Court emphasized its inability to issue directives under Article 32 of the Indian Constitution, pointing out that the demands of the petition were more legislative than judicial. The court’s decision underlines the distinction between legislative and judicial roles in forming regulations, especially in emerging sectors like cryptocurrency.

Crypto Trading in India

Regulatory Uncertainty: The rejection of the PIL underscores the ongoing uncertainty surrounding cryptocurrency trading in India. The absence of standardized rules and specific frameworks for handling cryptocurrencies continues to create a debatable environment.

Future Prospects: India is reportedly in the process of developing a cryptocurrency regulatory framework. This framework is expected to draw on recommendations from the International Monetary Fund (IMF) and the Financial Stability Board (FSB). Legal legislation pertaining to cryptocurrency regulation is anticipated within the next five to six months, which could bring much-needed clarity and structure to the sector.

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Boosting Trade Efficiency: XRPL’s fixReducedOffersV1 Upgrade

The “fixReducedOffersV1” amendment, which is currently in its final activation countdown phase, is about to bring about a significant improvement to the XRP Ledger (XRPL), which is nearing completion. This modification is a crucial upgrade for XRPL, signifying a step forward in resolving important concerns, notably within its Decentralized Exchange (DEX) services. It has received approval from more over 80% of the validators, signaling that it is ready for implementation.

Taking on the Challenges of the DEX: The major objective of fixReducedOffersV1 is to lessen the impact that decreased offer prices have on the order books of trades conducted on XRPL’s DEX. By ensuring that trade operations are both more visible and more efficient, the purpose of this update is to improve the overall functioning and dependability of XRPL.

Enhancing Exchange Rates This modification might result in rounding the exchange rate of a lowered offer to make it more attractive than the initial offer for takers on XRPL’s DEXs. This would be done in order to enhance exchange rates. This method could make it possible for additional matching offers to consume the decreased offer, which might eventually lead to trade situations that are more efficient and fair.

Requirements for Upgrades In order for this amendment to be successfully implemented, it is required that more than eighty percent of updates be completed within a timeframe of fourteen days. Users that depend on previous versions of rippled, notably v1.11.0 or earlier, are recommended to upgrade their systems in order to continue successfully engaging in XRPL’s ecosystem and to prevent disruptions.

Taking Action Against Unfavorable Rates In the absence of this modification, bids with very little money left over have a greater chance of being awarded considerably unfavorable exchange rates after rounding, in comparison to the value they had initially. This circumstance may make it more difficult to accept offers that are more advantageous, which would create difficulties for decentralized brokerage systems based on XRPL.

Update for XRPL v1.12.0: The correctionReducedOffersV1 was a component of the more extensive XRPL version 1.12.0 upgrade that was released in September. This update also includes many bug fixes and revisions relating to Automated Market Maker (AMM) and Clawback functionalities. Users were needed to upgrade to the most recent version in order to maintain uninterrupted interaction after this update, which was necessary for the ongoing progress of XRPL.

favorable Outlook and Security Audits: The XRPL has undergone considerable internal and external advancements, which have contributed to its more favorable outlook. Additionally, security audits have been conducted. XRPL’s prospects have been further strengthened by the conclusion of the most recent security assessment for the Xahau sidechain, which underlines the company’s commitment to maintaining high levels of security and dependability.

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Ex-FTX Execs Launch New Crypto Exchange Backpack

Nearly a year after the dramatic collapse of FTX, several former executives of the defunct cryptocurrency exchange have banded together to launch a new venture in the digital currency space. This new endeavor, named Backpack Exchange, is set to reshape the crypto landscape with a focus on enhanced security and regulatory compliance.

Genesis of Backpack Exchange

Leadership and Vision: The project is spearheaded by Can Sun, previously a lawyer at FTX, with significant support from Armani Ferrante, a former FTX employee who now serves as CEO of Trek Labs, the holding company based in the British Virgin Islands. Trek Labs, a Dubai-based startup, has been authorized to offer cryptocurrency services in the region. Claire Zhang, Sun’s former legal deputy at FTX and Ferrante’s spouse, also plays a crucial role in the team, albeit with plans to step down post-investment round.

Mission and Technology: With lessons learned from FTX’s downfall, Backpack Exchange focuses on ensuring the security of customer funds, a critical aspect FTX failed at. The exchange incorporates a self-custody solution utilizing a multiparty computation (MPC) technique, designed for enhanced security in fund transactions.

Strategic Location and Regulatory Compliance

Dubai as a Crypto Hub: The choice of Dubai as the base for Backpack Exchange is strategic. Dubai’s progressive stance towards virtual assets and the regulatory framework established by the Dubai Virtual Assets Regulatory Authority (VARA) offers a conducive environment for crypto ventures. Backpack has obtained the Dubai Virtual Asset Service Provider (VASP) license, enabling it to operate within one of the world’s emerging financial centers.

Product Offerings and Launch Timeline: Backpack Exchange plans to commence operations with spot trading, featuring state-of-the-art features like zero-knowledge proof of reserves and low-latency order execution. Exclusive early access is set for November 2023 for existing Backpack and MadLads community members, followed by a broader public launch in early 2024.

The Road Ahead: Transparency and Market Integrity

Commitment to Transparency: In a bid to instill greater trust and compliance in the crypto industry, Backpack Exchange adheres to VARA’s stringent regulations. This commitment is seen as a major step towards the institutionalization of cryptocurrency trading in Dubai, enhancing investor protection and maintaining market integrity.

Dubai’s Regulatory Framework: The decision of Dubai to regulate and license exchanges like Backpack reflects a positive approach towards embracing blockchain technology, with a focus on creating a regulated yet thriving environment for crypto-assets.

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U.S. Intensifies Sanctions on Hamas, Targeting Crypto Assets

Wally Adeyemo, the Deputy Treasury Secretary for the United States, made a recent announcement on further sanctions against Hamas, according to Reuters. These new measures are focused on Hamas’ usage of bitcoin assets. This comes as a direct retaliation to the assault carried out by the Palestinian terrorist organization against Israel a month ago. The purpose of the sanctions, which were coordinated with partners of the United States, is to cut off Hamas’s sources of revenue, especially those ones that include crypto assets.

Specifics of the Sanctions

The United States Treasury has implemented penalties on top Hamas leaders, a crypto exchange operating in Gaza, and people who have been related to Hamas’s financial support. This comprises two Hamas executives as well as six persons who manage the financial portfolio for Hamas across a variety of geographic areas. The sanctions are a part of an attempt to disrupt the income that the organization derives from a portfolio of companies that is worth hundreds of millions of dollars.

The Office of Foreign Assets Control (OFAC) under the United States Department of the Treasury especially targeted the cryptocurrency exchange known as “Buy Cash,” which was located in Gaza and is suspected of having aided in the funding of terrorist operations. In addition to that, Ahmed M. M. Alaqad, the primary operator of Buy Cash, was given a punishment. There is evidence to suggest that Buy Cash was involved in wealth transfers between al Qaeda affiliates and ISIS.

In addition, the action taken by the Treasury Department targeted people such as Musa Muhammad Salim Dudin and Abdelbasit Hamza Elhassan Mohamed Khair, who were reportedly involved in facilitating the movement of cash for Hamas. Other people who are subject to sanctions include Ahmed Sadu Jahleb, Amer Kamal Sharif Alshawa, Aiman Ahmad Al-Duwaik, and Walid Mohammed Mustafa Jadallah. All of these people are believed to have positions in organizations that are controlled by Hamas.

Those sanctioned include Hamas operatives Muhammad Ahmad ‘Abd Al-Dayim Nasrallah and Ayman Nofal, both of whom were recently slain in an Israeli attack.

The Situation

By soliciting donations in bitcoin, Hamas sought to get around restrictions imposed by the United States. However, this endeavor was unsuccessful as a result of the harsh steps that were taken by the United States Treasury to clamp down on operations of this kind. The government of Joe Biden, which is dedicated to imposing further expenses on Hamas and their funding, has placed an emphasis on the need for additional sanctions.

The dedication of the United States Treasury to thwarting the funding of terrorist organizations is reflected in the tightening of sanctions against Hamas, particularly in the field of virtual currencies. This action reflects the rising concern about the use of digital assets in terror funding as well as the proactive strategy taken by the United States government to combat this danger.

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ARK Invest Intensifies Investment in Robinhood

Cathie Wood, the renowned Bitcoin advocate and founder of ARK Invest, has recently intensified her firm’s investment in the cryptocurrency-friendly trading platform Robinhood (HOOD). ARK Invest made a significant move by acquiring 1.1 million Robinhood shares on November 8, amounting to an investment of over $9.5 million in a single day.

This acquisition involved three of ARK’s innovation-focused exchange-traded funds (ETFs): the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Fintech Innovation ETF (ARKF). The ARKK fund led the charge, purchasing 888,500 shares of HOOD, which constituted 78% of the total shares bought that day.

Prior to this substantial purchase, ARK had been steadily buying Robinhood shares, albeit in smaller quantities compared to the latest transaction. For instance, the day before, ARK had acquired 259,628 shares for its ARKW fund, followed by another purchase of 197,285 shares on October 23.

This aggressive investment strategy coincided with Robinhood’s announcement of its plans to expand into Europe, specifically eyeing the launch of brokerage services in the United Kingdom in the coming weeks. This move by Robinhood was announced amidst a challenging period for the company, as its stock price (HOOD) dropped over 14% following an earnings report that fell short of expectations, primarily due to reduced trading volume and a shrinking customer base.

On November 8, the closing price of Robinhood’s stock was reported by TradingView as $8.37. In a parallel development, ARK has been divesting from the Grayscale Bitcoin Trust (GBTC). On the same day, ARKW sold 48,477 GBTC shares, totaling approximately $1.4 million.

Since October 24, ARK has offloaded a total of 427,573 GBTC shares, valued at around $11.9 million at the time of this report. This selling trend is nearing the total GBTC shares ARK sold in November 2022.

In addition to these market moves, ARK has announced plans to launch new ETFs focusing on Bitcoin and Ether futures contracts. This initiative will be in collaboration with 21Shares, ARK’s primary partner in cryptocurrency ETFs.

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Ripple on the Brink of Decisive Win as SEC Legal Battle Nears End

In the continuing saga of Ripple versus the United States Securities and Exchange Commission (SEC), recent developments suggest a leaning in favor of Ripple, a prominent figure in the cryptocurrency space. Legal experts and community stakeholders are weighing in on the potential outcomes and implications of the case. John Deaton, a leading cryptocurrency attorney, has offered his insight, framing the situation as a significant victory for Ripple, should the case settle for $20 million or less.

Deaton’s comments came in response to general opinions mistaking the case’s conclusion for a balanced verdict between Ripple and the SEC. Instead, Deaton affirms a 90/10 advantage in favor of Ripple, negating the previously held 50/50 assumption. These remarks align with Ripple’s Chief Legal Officer Stuart Alderoty’s note on yet another legal setback for the SEC, referencing the outcome of the SEC vs. Govil case. The Second Circuit Court’s ruling against the SEC’s ability to seek large disgorgement orders without showing actual financial harm to investors strengthens Ripple’s stance. The community has echoed this sentiment, with figures like Wayne Vaughan and Crypto Adviser voicing their perspectives on Twitter, pointing towards a skewed settlement that favors Ripple and criticizing the SEC’s approach to investor protection.

The case, initially launched by the SEC in December 2020, accused Ripple Labs of conducting an unregistered securities offering via XRP sales. This development underscored the growing scrutiny around digital currencies and the SEC’s role in regulating them. The recent approval by Judge Torres of a joint request from the SEC and Ripple to establish a briefing schedule on institutional XRP sales further indicates a progression towards a conclusion. This request, linked to allegations of Rule 10b-5 violations by Ripple, sets a stage for both parties to present a comprehensive briefing schedule by November 9.

As the Ripple vs. SEC case evolves, the implications for the regulatory framework governing digital currencies remain significant. The legal fraternity and crypto community are closely monitoring the unfolding events, with the consensus tilting towards a favorable lean for Ripple. The final resolution of this case could set a precedent for future securities offerings and regulatory actions within the crypto space.

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Japan Freezes Assets Linked to Hamas Funding

On October 31, the Japanese government announced the freezing of assets belonging to nine individuals and one cryptocurrency trading company accused of financially aiding the Palestinian militant group Hamas, as per Kyodo News. This action comes amidst an ongoing conflict between Israel and Hamas, with other nations like the United States taking similar steps to curb the financial streams that fuel Hamas’s activities.

The Japanese government’s decision targets entities purportedly involved in the financial support of Hamas, which is engaged in rocket attacks against Israel. Hirokazu Matsuno, Japan’s Defence Minister, during a press briefing, emphasized on continued evaluation of potential sanctions from a counterterrorism financing perspective.

The United States had previously enforced sanctions against individuals and entities associated with Hamas on October 18. The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated ten individuals and entities, extending beyond the Gaza Strip to Sudan, Türkiye, Algeria, and Qatar. This action aimed at dismantling Hamas’s financial network, aligns with the broader international initiative to disrupt terrorist financing.

The involvement of a cryptocurrency trading company in this case sheds light on the growing global concern over digital financial platforms facilitating illicit financial flows, a matter that has been underscored by the US sanctions targeting a Gaza-based virtual currency exchange.

These actions by Japan and the US reflect a growing international consensus to tackle terrorism financing. The measures add a financial dimension to the efforts aimed at curbing militant activities in the Middle East, amidst the continuing conflict between Israel and Hamas.

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Ripple CEO Brad Garlinghouse Criticizes Former SEC Chair Jay Clayton’s Regulatory Approach

The Chief Executive Officer of Ripple, Brad Garlinghouse, has voiced his disagreement with the regulatory posture taken by Jay Clayton, who formerly served as Chair of the US Securities and Exchange Commission (SEC). This criticism surfaced in response to statements made by Clayton during an interview with CNBC on June 29, 2023. Clayton was discussing the SEC’s more aggressive legal stance against corporations, especially those operating in the cryptocurrency industry.

The Securities and Exchange Commission (SEC) started taking a number of regulatory measures against cryptocurrency organizations and exchanges at the beginning of 2023 in an effort to safeguard investors. The regulatory environment has been significantly disrupted as a result of these moves, which has increased the level of legal uncertainty for a variety of crypto organizations. In an interview with CNBC, Clayton said that legal action should only be conducted against corporations that have good legal grounds, and he emphasized that regulatory agencies should provide claims and policies that are capable of withstanding the examination of a court.

In his response to Clayton’s interview, Garlinghouse pointed out the irony of the situation, particularly in light of the fact that the SEC had previously initiated a case against Ripple when Clayton was in charge of the agency. Ripple, Garlinghouse, and Christian Larsen, the co-founder of Ripple, were accused in a lawsuit that was filed in December 2020 of arranging a “unregistered, ongoing digital asset securities offering,” and it was claimed that they made more than $1.3 billion from the sale of XRP. Garlinghouse brought out the inconsistency between Clayton’s words and his actions and emphasized the flimsy legal foundation of the SEC’s case against Ripple, which intended to categorize XRP as a security. He did this by pointing out the discrepancy between Clayton’s words and his actions.

The disclosure of Clayton’s remarks from June 2023 has emerged as a topic of conversation among the parties engaged in the current court procedures, which are still ongoing. The Securities and Exchange Commission (SEC) submitted a petition in October asking the court to dismiss the allegations against Garlinghouse and Larsen without prejudice, which further stirred the current discussion about the regulatory environment for cryptocurrencies.

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Chamber of Digital Commerce Joins Forces to Counter SEC’s Lawsuit Against Binance.US

A concerted effort is underway to defend against the lawsuit filed by the United States Securities and Exchange Commission (SEC) against Binance. This lawsuit, rooted in allegations dating back to at least July 2017, claims that Binance, under the stewardship of CEO Changpeng Zhao, operated as unregistered exchanges, brokers, dealers, and clearing agencies, thereby generating substantial revenue primarily from transaction fees from U.S. customers​1​. In light of these allegations, the Chamber of Digital Commerce, headquartered in the United States, has mobilized alongside a myriad of other businesses, groups, legal experts, and politicians to challenge the SEC’s lawsuit.

The core of this collective resistance is captured in a recent amicus brief. The document articulates a dual objective: firstly, to challenge the SEC’s mode of regulation through enforcement, and secondly, to halt the SEC’s initiative to regulate the cryptocurrency sector without explicit authorization from the United States Congress. The amicus brief underscores a broader industry sentiment concerning the SEC’s jurisdiction over digital assets, positing that the SEC lacks the necessary legislative mandate to classify all digital assets as securities.

Pivoting on this argument, the Chamber of Digital Commerce has petitioned the court to dismiss the SEC’s case against Binance. The grounds for dismissal underscore the SEC’s alleged overreach, the assertion that digital assets do not constitute investment contracts, and the claim that token transactions do not meet the Exchange Act registration requisites. This motion resonates with the stance of Binance.US, Binance Holdings, and CEO Changpeng Zhao, who have jointly filed a motion to dismiss the lawsuit, contending that the SEC has overstepped its authoritative boundaries.

Furthermore, Binance.US has voiced its concerns regarding the SEC’s latest requests for document discovery and depositions, denouncing them as unreasonable. This stance was fortified when Binance.US, a cryptocurrency exchange based in the United States, formally objected to the SEC’s request for additional information, submitting the necessary documentation to express its dissent.

The collaborative endeavor spearheaded by the Chamber of Digital Commerce not only signifies a robust defense against the SEC’s lawsuit but also underscores a broader industry pushback against the SEC’s regulatory approach towards the burgeoning cryptocurrency sector. This collaborative resistance illuminates the ongoing tension between regulatory authorities and cryptocurrency entities, a dynamic that continues to evolve amidst the unfolding legal discourse surrounding Binance.US.

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Bitcoin (BTC) $ 43,888.76 0.18%
Ethereum (ETH) $ 2,349.69 0.73%
Litecoin (LTC) $ 77.24 1.50%
Bitcoin Cash (BCH) $ 255.43 2.48%