Tripled Crypto Wallets and Prospective ETF Approval Fuel Bitcoin's Price Surge
Summary:
This year saw a threefold increase in the number of crypto wallets holding Bitcoin (BTC) worth over $1 million, with the count going from 23,795 on January 1st to 81,925 currently. Besides, there's been a slight rise in the number of "wholecoiners" since 2021 started. Bitcoin's price sees a surge, partly due to market keenness for upcoming spot exchange-traded fund (ETF) products. Although Bloomberg's ETF analysts predict a 90% chance of spot Bitcoin ETF approval by January 10, not all analysts believe it will trigger the next bull run.
This year has seen a more than threefold rise in the number of cryptocurrency wallets hodling Bitcoin (BTC) amounting to over $1 million. As per BitInfoCharts, the count of such wallet addresses grew from 23,795 on January 1st to an enormous 81,925 at present, marking a soaring 237% surge within a period of 11 months. It is observed that these millionaire wallets are not one-to-one with individual users as quite a few of them, containing more than $1 million in BTC, are owned by crypto exchanges and financial institutions.
Drawing up a comparison from Glassnode's data, it was found that the number of addresses maintaining more than $1 million in Bitcoin reached a peak during the crest of the previous bull market in November 2021, stating a record 112,573 addresses on November 9th, 2021. This was a day before Bitcoin hit its all-time elevated price of $69,000 on November 10th, 2021.
Moreover, there has been a minor rise in the number of 'wholecoiners' - bitcoins maintained by wallets having at least 1 BTC balance since the starting of this year. Presently, these stand at 1,018,015, which is a 4% rise from 978,197 on January 1st. The remarkable leap in the number of wholecoiners since 2018 was observed between April and December of the past year, reflecting a strong accumulation trend irrespective of a wider price decline coming from a chain of spectacular fallouts in the cryptocurrency industry.
As of now, Bitcoin is valued at close to $37,100, marking a 38% rise from the past month. The surge in the price of Bitcoin is attributed to the enthusiastic market response for several forthcoming spot exchange-traded fund (ETF) products.
Bloomberg's ETF analysts suggest a soaring 90% likelihood of a spot Bitcoin ETF receiving approval by January 10th, with the majority anticipating a significant price rally in its wake. Contrarily, not every analyst shares the belief that an approval for a spot Bitcoin ETF will kick-start the new bull run. According to Tina Teng, an analyst with CMC Markets, while approval might be favourable for the crypto industry, both Bitcoin and the broader macroeconomic landscape lack the required basics to vindicate an all-out trend reversal.
Published At
11/13/2023 12:59:23 AM
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