The surge in bitcoin prices has led to 70,000 new crypto millionaires, totaling 241,700 individuals with crypto holdings worth $1 million or more. Bitcoin’s price has doubled in the past year, reaching over $125,000. The total market cap of cryptocurrencies is now over $4.3 trillion, adding $2 trillion in wealth over three years.

A recent study found that crypto investors spend roughly 9.7 cents for every dollar gained in crypto wealth, more than twice the typical spending rate for gains in the stock market. The added wealth from crypto gains led to $145 billion in additional spending in 2024, accounting for 0.7% of total U.S. consumption.

While some crypto investors splurge on luxury items like Lamborghinis and Rolexes, most spending goes towards restaurants, entertainment, and general merchandise. Real estate is also popular among the crypto wealthy, with home prices growing faster in counties with large crypto populations when bitcoin spikes.

Wealthy crypto investors are holding onto their assets in anticipation of further price increases, with many pouring more money into the asset class. As they age and start families, spending is expected to shift towards real estate rather than luxury items. Crypto-backed lending products may also increase spending among the crypto wealthy as they gain more borrowing options.

Read more at CNBC: How crypto millionaires spend their fortunes