What happened to the number of Bitcoin wallets holding more than $1 million and $10 million during August’s rally, how did Bitcoin’s price movement, U.S. Treasury Secretary Scott Bessent’s long-dated bond-buyback expansion, the resulting “debasement trade,” short liquidations, an

Bitcoin’s August rebound sharply increased the number of high-value BTC addresses, but the move combined macro sentiment, a derivatives-driven short squeeze, and renewed institutional spot-ETF demand—not simply new individual wealth creation. The outlook turned more constructive, but the rally still faced substantial technical and flow-related risks.

What rose and why

• Bitcoin wallets valued above $1 million rose by 11,636, or 10.4%, from 111,846 in late July to 123,482 by August 31. Wallets above $10 million increased 11.2%, from 14,009 to 15,584. 13
• Bitcoin gained about 23% during the surge, reaching a more-than-three-month high above $80,000. 127
• On August 19, Treasury Secretary Scott Bessent expanded Treasury repurchases intended to reduce long-dated yields; the announcement weakened the dollar and revived the “debasement trade”—investors buying scarce or perceived hard assets such as gold and Bitcoin amid fiscal-deficit, debt, and policy concerns. 56
• The macro catalyst met crowded bearish derivatives positioning, producing a short squeeze that liquidated more than $1.6 billion on August 19 and accelerated BTC’s advance. 7
• US spot Bitcoin ETFs then supplied a more durable source of demand: the 13 US-listed funds took in $1.92 billion in the week ending August 24, their biggest weekly net inflow in 10 months. 4

Bullish signals cited

• Bernstein expected Bitcoin to reach $150,000 by mid-2027 and about $300,000 at the next-cycle peak in 2029, arguing that the debasement trade could provide a macro tailwind. 10
• The key BlackRock-related bullish signal was institutional access and demand through spot ETFs, exemplified by the $1.92 billion weekly industry inflow; it suggested that the move was extending beyond a purely leveraged trading rebound. 4
• VanEck’s constructive framing, as reflected in the broader institutional thesis, rests on Bitcoin’s role as a scarce asset and potential hedge against currency debasement; however, the supplied evidence does not substantiate a specific VanEck price target or indicator. Insufficient evidence.

Important caveat on “Bitcoin millionaires”

• A wallet address is not a person: one owner or institution can control many addresses, while exchange, ETF-custody, corporate, or other omnibus wallets can represent many beneficial owners. Therefore, wallet counts cannot be treated as a count of individual Bitcoin millionaires.

What could derail the advance

• Supply and resistance: BTC faced a heavy supply/resistance zone around $81,000–$86,000, where holders who bought at higher prices may sell into a recovery. 11
• ETF-flow reversal: ETF demand was powerful but volatile: the same funds had experienced $389.7 million of net outflows in the week of August 10, their largest weekly withdrawal in six weeks. Sustained renewed outflows would remove an important marginal buyer. 3
• Leverage and positioning: Declining futures open interest and negative perpetual-futures funding can indicate reduced conviction and persistent bearish positioning. They can enable another squeeze if price rises, but can also signal fragile demand if spot buying fades.
• Profit-taking: A 23% advance and the sharp creation of new dollar-value “millionaire” addresses may encourage short-term holders, whales, or ETF investors to realize gains—particularly near the $81,000–$86,000 resistance band. 1711

In short, the rally had a credible macro and institutional-demand foundation, but confirmation would require continued ETF inflows, sustained spot demand, and a decisive break above the overhead supply zone rather than another short-squeeze-driven spike.