Bitcoin Millionaire Wallet Creation: A Tale of Peaks and Moderation

Bitcoin’s recent price rally to around $72,000 has sparked an uptick in creating new “millionaire” wallets holding the cryptocurrency. However, this increase is relatively modest compared to the frenzy witnessed during the previous bull market cycle.

The leading cryptocurrency, with the highest market capitalization, has seen a phenomenal 70% increase in price since the start of the year. Its entire market capitalization is $1.4 trillion, up a significant 4.5% in the previous 24 hours.

According to Bloomberg, approximately 1,500 new Bitcoin wallets with a balance valued at over $1 million are created daily. This figure pales compared to the peak period of the last bull run in November 2021, when Bitcoin reached its then-record high of $69,000. During that exhilarating phase, investors established a staggering 4,000 new millionaire wallets and created over 2,000 addresses holding at least $10 million worth of Bitcoin daily.

Bitcoin Millionaire Wallet Growth Slows

The current numbers are reminiscent of July 2022, when Bitcoin’s value had plummeted below $20,000. Analysts at Kaiko, a Paris-based crypto analytics firm, attribute the sluggish growth to a potential lack of fresh investments flooding the market and large Bitcoin holders cashing in some profits.

On the other hand, a great deal of funds streamed into the 2021 bull rally because market players became excited and speculative about an increasing cryptocurrency value. Nevertheless, at this time around, major investors are acting more cautiously as they wait to see if this price surge could sustain itself. This means they will not allocate huge amounts of money before ascertaining whether the present price jump is worth committing their resources.

Also, Kaiko points out that some individuals or organizations own significant Bitcoin assets, including custodial services rather than personal wallets as their choice for storing them. This change can directly contribute to people perceiving a decrease in newly created millionaires wallets.

The fact that there are few new Bitcoin millionaire wallets suggests the bull run is still early, and there is still more capital inflow. This line of thinking agrees with the general expectation in the market that Bitcoin prices should soon approach $150,000 or even higher due to the anticipated placement of investments into spot Bitcoin ETFs and this year’s halving.

Further, according to current market data, spreads between buying and selling order liquidity less than 2% away from the Bitcoin market price have grown to over five times their normal size. Investors may look forward to taking advantage of prices near all-time highs, indicating a cautious but positive feeling shared within their community.

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