According to the latest publicly available blockchain data, 983,000 individual wallets hold at least 1 Bitcoin. The true number of Bitcoin holders is estimated to be closer to the 800,000 number.
Many large holders, such as exchanges and Bitcoin whales, store their Bitcoin across multiple wallets.
A further 54.6 million wallet addresses own fractions of the Bitcoin. They range from 0.00001 of a Bitcoin (valued at around $1.75 BTC to AUD) to just under 1 whole coin. All data extracted from Investopedia.
That’s a global overview. Focusing on Australians, a recent Independent Reserve Cryptocurrency Index, an annual cross-sectional survey of over 2,100 everyday adult Australians, reported that 31% of Australians own crypto, a 28% increase from 2024. That equates to 6.2 million Australians owning or having owned crypto. Bitcoin is noted as the primary asset, with 70% (4.3 million) of Australians having Bitcoin in a wallet.
The price of Bitcoin in AUD fluctuates based on numerous external factors. Below, we’ll discuss the 4 key factors driving the Bitcoin AUD price.
Exchange Rates
Exchange rates are one of the dominating determinants for Bitcoin’s value in AUD. The issue is that Bitcoin is usually priced in USD first, then converted into local currency. So, if the Australian dollar weakens against the US dollar, you’ll see a higher price for BTC in AUD. It doesn’t matter if Bitcoin’s USD value hasn’t changed.
The Australian dollar is gaining favorable ground – USD $1 converts to AUD $1.54. Risk appetite appears to be improving with the rising odds of a U.S. Fed rate cut. The Fed rate cut impacts banks and how much they charge each other when lending money. News on that comes in September.
BTC becomes more valuable to Australians if AUD continues to strengthen, even though the BTC value is the same globally. For the most accurate price, look at AUD, USD, and the exchange platform you’re using. Even the platform itself can cause differences. Not all crypto exchanges use the same forex feeds or update pricing at the same time.
Some platforms have higher liquidity, which can make conversions more accurate. Others charge higher fees or offer poor spreads.
Cryptocurrency Market Trends
Sentiment swings massively impact Bitcoin. Some of the most impactful market trends and announcements that directly impacted Bitcoin include:
- Spot Bitcoin ETFs (positive)
- Adoption growth (positive): Bitcoin ownership rates in America doubled to 28% since 2021. We’ve mentioned Australian adoption rates in the introduction.
- Institutional investment (positive/negative): BlackRock iShares, Grayscale, Microstrategy, and Tesla are the biggest institutional investors.
We’ve listed institutional investment as a positive and a negative. Any Bitcoin rebound due to institutional investment economics eventually faces resistance. Long-term holders cash out, and institutional sentiment begins to cool. The recent 30-day skew fell from +2% to -2%, suggesting investors pay more to hedge against declines.
These trends affect how investors behave in Australia. When the crypto market shows confidence, Australians follow. Globally, that’s the norm. Market sentiment in global crypto circles almost always trickles into local prices.
Economics and Macroeconomics
One of the most recent swings was the announcement from Donald Trump and his proposed trade tariffs. Falling to below $74,000, more than 12% of its value. Since climbing to $113,925.30, an increase of 16.67% in the previous 6-month trading window, the swing was short-lived.
Australia’s economy also matters. If inflation rises or interest rates change, people shift how they spend and invest. During economic downturns, some look at Bitcoin as a hedge. Others exit risky assets like crypto and return to cash.
The global economy is more impactful. If the US is in a recession or China changes its trade strategy, the ripple can be felt in Australia’s markets. For example, Bitcoin’s recent steady decline led some market experts to suggest an imminent risk of a U.S. recession or at least a significant U.S. growth rate cycle downturn. This then strengthens or weakens the Aussie dollar exchange rate.
Likewise, in a booming economy with strong consumer confidence, there’s often less interest in Bitcoin as a store of value.
Whether you’re a retail investor or just crypto-curious, these four factors should guide how you look at Bitcoin in the Australian market:
- Exchange rates
- Market trends
- Regulation
- Macroeconomics
Bitcoin is volatile, but it’s not random.
