The Bitcoin Market Sees a Surge in Millionaires
The cryptocurrency market is currently experiencing a significant shift, with the number of addresses holding over $1 million in Bitcoin more than tripling in 2023, reaching over 81,000.
This surge represents a 237% growth since January and coincides with Bitcoinβs price rally, surpassing the $37,000 threshold.
Bitcoin Millionaires Multiply
Bitcoin has been on a remarkable ascent, nearing $38,000 last week and hovering around $37,000 in the early hours of Monday. Short-term Bitcoin holders have reaped significant profits from this upsurge by selling and raking over $1.8 billion.
On the other hand, long-term holders have been accumulating before the upcoming Bitcoin halving. This accumulation phase contrasts with short-term holders who are potentially influencing market dynamics by taking profits.
![Increasing Numbers of Bitcoin Millionaires Anticipate New Bull Run Number of Bitcoin Millionaires](https://beincrypto.com/wp-content/uploads/2023/11/glassnode-studio_bitcoin-number-of-addresses-with-balance-1m-850x478.png)
The bullish trend in Bitcoinβs price and increasing millionaires is underpinned by strong liquidity trends. Data from Glassnode suggests that Bitcoinβs available supply has hit a historical low, indicating a tightening supply and reluctance among existing holders to sell.
Institutional Interest Spikes
Open interest in Bitcoin and Ethereum crossed the $20 billion mark for the first time since the FTX collapse, indicating heightened market activity and interest levels. The increasing market share of the Chicago Mercantile Exchange (CME) suggests it is a preferred venue for large traditional finance companies to get exposure to crypto.
![Increasing Numbers of Bitcoin Millionaires Anticipate New Bull Run Open Interest Binance vs. CME](https://beincrypto.com/wp-content/uploads/2023/11/image-118-850x478.png)
The order book depth for Bitcoin and Ethereum has tightened despite strong price increases, suggesting a relative lack of sellers compared to buyers. The annualized realized volatility for Bitcoin and Ethereum also remains relatively low, reinforcing the stability of the current market rally.
Hot Take: The Ongoing Crypto Rally
The ongoing crypto rally indicates a significant shift in market dynamics and might signal the beginning of the next bull market. This surge is driven by institutional investors and a market with relatively few sellers.
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