Key Takeaways:
- Bitcoin’s value soared to over $72,000, yet the growth of new “millionaire” wallets remains modest compared to previous bull runs.
- The daily creation of million-dollar Bitcoin wallets has risen from under 500 in January to around 1,500, still far below the peak periods of 2021.
- The cautious approach of potential large-scale investors and the shift towards using custodial services over personal wallets are influencing the current trend.
- The introduction of spot Bitcoin ETFs in the United States, accumulating over $28 billion in Bitcoin, offers a new investment mechanism, indirectly affecting whale wallet data visibility.
Despite Bitcoin reaching unprecedented heights, the influx of new “millionaire” Bitcoin wallets has been slow to follow suit. Recently, Bitcoin’s value soared to over $72,000, bringing about a modest rise in the creation of wallets holding over a million dollars worth of Bitcoin to approximately 1,500. This increase pales in comparison to the surge experienced during Bitcoin’s last major bull run, which minted thousands of new millionaires daily.
In January, the count of new million-dollar Bitcoin wallets was relatively low, under 500. Yet, it has been inching closer to the 2,000 mark. However, Kaiko Research highlights that, back in November 2021, when Bitcoin peaked at $69,000, the daily creation of new million-dollar wallets exceeded 4,000, alongside 2,000 new wallets each day crossing the $10 million threshold.
The current rise in Bitcoin’s price has not catalyzed a significant return of on-chain Bitcoin whales, a scenario similar to July 2022, when Bitcoin’s value dipped below $20,000. This sluggish rebound of new high-value Bitcoin wallets is attributed to a cautious approach by potential investors and existing whales possibly securing profits amidst the new highs.
The crypto landscape has seen changes since 2021’s capital influx driven by widespread enthusiasm in the sector. Today, it seems whales are adopting a watchful stance, assessing the market’s stability before committing their capital.
Additionally, the preference for using custodial services over personal wallets has influenced the dynamics, with the introduction of spot Bitcoin exchange-traded funds (ETFs) in the United States playing a significant role.
These ETFs, having amassed over $28 billion in Bitcoin since their inception in January, offer a different investment avenue. Instead of direct Bitcoin ownership, investors hold ETF shares, impacting the visibility of Bitcoin holdings in whale wallet analyses.
[1/4] Bitcoin ETF Flow – 08 March 2024
— BitMEX Research (@BitMEXResearch) March 9, 2024
All data in. $223m positive net flow for thew day
The assets of the ETFs excluding GBTC are now over $28 billion, this is now larger than GBTC's assets for the first time pic.twitter.com/5BlBTu4WLn
Despite these shifts, the broader Bitcoin community has witnessed growth, with the number of millionaire wallets increasing nearly 300% to 90,000 throughout the previous year.
Bitcoin enthusiasts, or “hodlers,” have seen their persistence rewarded with a price surge of about 160% to $42,200 in 2023, and a further increase of 71% since then, marking the current price at $72,079.18.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
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