Analytics Firm Kaiko: Bitcoin Whales Slow to Return as New Capital Yet to Arrive in Full Force
According to a recent report by analytics firm Kaiko, Bitcoin (BTC) has not yet experienced the full impact of fresh capital despite reaching new all-time highs. The research team at Kaiko suggests that the current crypto bull market is producing new Bitcoin millionaire whales at a much slower pace compared to the market cycle in 2021.
Slow Return of Bitcoin Millionaire Whales
Kaiko’s analysis reveals that on-chain Bitcoin whales are experiencing a slow return. The number of new daily millionaire wallets remains below two thousand, while during the previous bull run, over four thousand wallets were reaching the million-dollar mark daily and more than two thousand wallets were reaching $10 million.
Possible Reasons for Slow Return
Kaiko proposes three potential reasons for the slow return of Bitcoin millionaire whales:
- New capital has yet to arrive in full force.
- Large whales are taking profit as BTC hits new highs.
- Whales are storing their holdings with custodians instead of personal wallets.
Cautious Approach by Deep-Pocketed Investors
The data suggests that deep-pocketed investors are adopting a cautious approach despite Bitcoin trading at all-time high levels. In 2021, there was a significant influx of capital as various bulls sought to benefit from the crypto hype. However, this time around, whales may be waiting to see if the gains have longevity before making further investments.
Bitcoin’s Current Price
At the time of writing, Bitcoin is trading at $71,482.
🔥Hot Take
Bitcoin Whales Remain Cautious as Fresh Capital Awaits Full Force
The slow return of Bitcoin millionaire whales, as highlighted by Kaiko’s report, indicates that the crypto market has yet to witness the full impact of new capital. While Bitcoin continues to reach new all-time highs, deep-pocketed investors are taking a wait-and-see approach. This cautious behavior may be attributed to various factors, including the potential arrival of new capital, profit-taking by large whales, and the preference for custodial storage among whales. As the market evolves, it remains to be seen how these dynamics will influence Bitcoin’s future trajectory.
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