Bitcoin Hits Record High Over $73K, Creating an Estimated 1,500 Daily 'Millionaires'
Summary:
Bitcoin (BTC) achieved a new all-time high of over $73,000 on March 13, creating around 1,500 "millionaires" daily as per Kaiko Research. This surge comes as institutional investors increase their investments in BTC, facilitated by recent approvals of spot Bitcoin exchange-traded funds (ETFs). These funds make up nearly 90% of the daily trading volume in ETFs with BTC exposure. Analysts predict varying future BTC prices, ranging from $100,000 to $350,000 in the next few years.
This week, Bitcoin (BTC) has continued its victorious ascent, breaking previous records and achieving a new peak of over $73,000 on March 13. It's estimated that this impressive performance of BTC is minting around 1,500 "millionaires" daily, as per findings by Kaiko Research. Trading data from platforms such as Cointelegraph Markets Pro and TradingView highlighted that BTC’s value scaled from $71,473 at the start of March 13, to cresting a record-breaking $73,709 on Coinbase, showcasing a growth of 3.5%.
The uptrend comes as a result of institutional investors flushing more money into the BTC market, facilitated by the recent approval of spot Bitcoin exchange-traded funds (ETFs). It was pointed out by independent investor HODL15Capital that there is a noticeable rise in investments towards spot Bitcoin ETFs through a post on the X social network on March 13. The report showed daily investments into spot Bitcoin ETFs setting a record with net inflows of $1 billion on March 12. He suggests that investors hold on to their BTC rather than selling them to ETFs.
With these incoming investments, almost 90% of daily trading volume in ETFs offering BTC exposure is now held by spot Bitcoin ETFs, as per The Block’s data. These statistics reflect the growing preference of investors for ETFs in gaining direct exposure to BTC compared to using Bitcoin futures contracts-based products.
A study by Kaiko Research indicates that every day, roughly 1,500 new "Bitcoin millionaires" are being born due to the recent BTC rally, predominantly supported by U.S. spot Bitcoin ETFs. This suggests rising wealth accumulation within the world of cryptocurrencies. As shown in the chart, less than 2,000 daily wallets contain either $1 million or $10 million worth of BTC.
This is noticeably lower compared to numbers from the 2021 bull run, where more than four thousand wallets were hitting the million-dollar mark daily. In the words of the researchers from Kaiko, the slower millionaire growth rate could be attributed to a dearth in fresh capital, profit-taking activities by large BTC holders hitting new highs, and their decision to store their holdings using custodians instead of personal wallets.
Looking forward, market analysts are positing optimistically varied targets for BTC price. Standard Chartered anticipates BTC exceeding $100,000 by end of 2024. SkyBridge, a hedge fund, foresees a possible price of $170,000 by April 2025. Fundstrat projects BTC ranging somewhere between $116,000 and $137,000 by year-end, while investment management firm VanEck sets a medium-term target at an ambitious $350,000. Independent analyst Ted Talks Macro remarks that investments are flooding into the Bitcoin market like never before and suspects BTC will reach $100,000 soon.
As BTC rallies on, market participants are speculating the upcoming supply halving, scheduled for April 2024, to drive the price further upwards. Just a reminder that this does not constitute investment advice or recommendations. Any investment or trading move involves risk, and proper research should be conducted before making a decision.
Published At
3/13/2024 10:20:00 PM
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