Rise in Bitcoin Price Leads to Increase in Millionaire Wallets
After Bitcoin’s recent price surge to $72,000, the number of new “millionaire” wallets for the cryptocurrency has risen to about 1,500 per day. However, this increase is relatively modest compared to the previous bull market.
The price of Bitcoin has increased by 70% since the beginning of the year, with a total market capitalization of $1.4 trillion. This reflects a 4.5% increase in the last 24 hours, according to CoinGecko data.
New Millionaire Wallet Creation Slows Down
Data from Paris-based analytics firm Kaiko reveals that fewer than 2,000 new Bitcoin millionaire wallets are being created daily. This is a significant decrease compared to the peak period of the last bull run in November 2021 when over 4,000 new millionaire wallets were created daily.
During that bull run, there were also more than 2,000 addresses holding at least $10 million in Bitcoin established each day. The current numbers are similar to July 2022 when Bitcoin dropped below $20,000.
Kaiko suggests that the slower growth in new millionaire wallets could be attributed to new investments not entering the market in full force and large Bitcoin whales cashing in some profits. In comparison to 2021, when there was a massive capital influx driven by enthusiasm about the crypto market, large investors appear to be more cautious this time.
They seem to be waiting to assess whether the current price increase is sustainable before making further investments. Additionally, more Bitcoin whales may now prefer using custodial services instead of personal wallets to store their assets, contributing to the decrease in new millionaire wallets.
Slower Growth Indicates Early Bull Market
The slower growth in new Bitcoin millionaire wallets could indicate that the bull market is still in its early stages, and the peak of capital inflows has yet to be reached. This aligns with the market anticipation that Bitcoin’s value could climb to $150,000 or more in the near future.
Optimism is fueled by sustained investments into spot Bitcoin exchange-traded funds (ETFs) and the expected decrease in BTC supply due to the upcoming halving event. Recent market analysis also shows a significant increase in the gap between liquidity for sell orders and buy orders within 2% of Bitcoin’s market price.
This suggests a growing accumulation of sell limit orders, indicating that investors may be looking to capitalize on profits near the all-time high price levels. It reflects a cautious yet optimistic outlook for the market.
Hot Take: Bitcoin Millionaire Wallet Growth Slows Down Amidst Price Surge
The recent surge in Bitcoin’s price has led to an increase in the number of new “millionaire” wallets being created. However, this growth is slower compared to previous bull markets. While Bitcoin’s price has risen by 70% since the beginning of the year, fewer than 2,000 new millionaire wallets are being created daily.
This is a significant decrease from the peak period of the last bull run when over 4,000 new millionaire wallets were established daily. The current numbers are similar to July 2022 when Bitcoin dropped below $20,000.
The slow growth in new millionaire wallets could be attributed to cautiousness among large investors who are waiting to assess whether the current price increase is sustainable before making further investments. Additionally, more Bitcoin whales may be using custodial services instead of personal wallets, contributing to the decrease in new millionaire wallets.
However, this slower growth could also indicate that the bull market is still in its early stages, with the peak of capital inflows yet to be reached. Market anticipation suggests that Bitcoin’s value could climb to $150,000 or more in the near future.
Overall, while the growth in new millionaire wallets may have slowed down, the market remains optimistic about Bitcoin’s potential for further price increases.
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