Bitcoin Rally Results in Surge of New 'Millionaire' Wallets, Noted Slower Return of Bitcoin Whales
Summary:
Following Bitcoin's recent surge to $72,000, the creation of new daily Bitcoin “millionaire” wallets has climbed to around 1,500. Kaiko Research reports an increase from fewer than 500 new wallets in January, but still less than during the last bull run. The slower return of Bitcoin millionaires may be attributed to untapped new capital reserves and larger investors waiting before investing at the new high. The introduction of U.S.-based Bitcoin ETFs might also signal a shift towards custodial rather than personal storage due to the indirect nature of Bitcoin holdings in ETFs.
Following Bitcoin's recent rally up to $72,000, the production of new Bitcoin “millionaire” wallets daily has climbed to approximately 1,500. Despite this increment, it falls short when compared to the number of millionaires being created daily during the previous bull run. March 11 statistics from Kaiko Research reveal that the daily creation of Bitcoin wallets with a worth of $1 million was below 500 in January, but is edging towards the 2,000 line now.
Kaiko explains that during the previous bull run, where Bitcoin achieved a record high of $69,000 on November 10, 2021, more than 4,000 wallets were created daily with a worth of $1 million, alongside another 2,000 wallets valuing at $10 million daily. However, Kaiko states, “Despite the recent price surge, on-chain Bitcoin whales are making a gradual comeback". Interestingly, the current number of new daily Bitcoin millionaires equates to the statistics from July 2022, when Bitcoin dipped below $20,000.
Kaiko suggests this gradual comeback of new daily Bitcoin millionaire wallets is due to the new capital not yet being introduced in “full force” and because big Bitcoin holders might be taking profits as Bitcoin reached new record highs. In 2021, there was significant capital influx as all kinds of bull sought to monetize on the crypto trend. This time, however, Bitcoin whales might be acting more cautiously, waiting to confirm whether the profits sustain before investing.
Additionally, Kaiko hypothesizes that an increased number of whales might be storing their holdings with custodians rather than individual wallets. The release of spot Bitcoin exchange-traded funds (ETFs) may have contributed to this, considering that the nine newly-launched Bitcoin ETFs based in the United States have collectively accumulated over $28 billion worth of Bitcoin since their launch in January, as per March 8 data from BitMEX Research. Major custodians of these Bitcoin ETFs include Coinbase and BitGo.
Investors in spot Bitcoin ETFs hold shares of the ETFs rather than Bitcoin directly, which implies their indirect Bitcoin holdings wouldn't show up in this whale wallet data.
Last year, Bitcoin millionaire wallets saw a nearly 300% surge to 90,000 over the year, as per data from cryptocurrency research firm Glassnode. 2023 was a productive year for Bitcoin “hodlers”—with the price jumping about 160% to $42,200. Since then, Bitcoin's value has soared 71% more and currently trades at $72,200.
Published At
3/12/2024 4:45:14 AM
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