The number of new “millionaire” wallets for Bitcoin (BTC) has risen to about 1,500 daily after the cryptocurrency’s price surged to $72,000 recently. However, this increase is modest compared to the daily creation of new millionaires during the previous bull market.
The leading cryptocurrency by market capitalization has experienced a 70% price surge since the beginning of the year. The total market cap currently stands at $1.4 trillion, reflecting a 4.5% increase in the last 24 hours, as reported by CoinGecko data.
New Bitcoin Millionaire Wallet Creation Slows Down
According to data from Kaiko, a Paris-based analytics firm, fewer than 2,000 new Bitcoin millionaire wallets are being created daily.
The amount is a major decrease from the peak period of the last bull run in November 2021, when Bitcoin reached its then-all-time high of $69,000. During the bull run, over 4,000 new millionaire wallets and more than 2,000 addresses holding at least $10 million in Bitcoin were established daily.
The current numbers are similar to July 2022, when Bitcoin dropped below $20,000. Kaiko explained that the slow growth could be due to new investments not being injected in “full force” and large Bitcoin whales cashing in some profits.
Comparatively, in 2021, there was a massive capital influx driven by widespread enthusiasm about the crypto market. However, large investors appear to be more cautious this time, seemingly waiting to assess whether the current price increase is sustainable before investing.
Additionally, Kaiko suggests that more Bitcoin whales may now prefer using custodial services to store their assets instead of personal wallets. This shift could also contribute directly to the perceived decrease in creating new millionaire wallets.
Slower Growth Could Signal Early Bull Market
The slower growth in new Bitcoin millionaire wallets could indicate that the bull market is still in the early stages, and the peak of capital inflows is yet to be reached. The perspective aligns with the broader market anticipation that Bitcoin’s value could climb to $150,000 or more in the near future.
Such optimism is fueled by the sustained investments into spot Bitcoin exchange-traded funds (ETFs) and the expected decrease in BTC supply due to the upcoming halving event.
Furthermore, recent market analysis indicates a significant increase in the gap between the liquidity for sell orders and buy orders within 2% of Bitcoin’s market price, expanding to nearly five times the usual size. This shows a growing accumulation of sell limit orders, suggesting that investors could be looking to capitalize on profits near the all-time high price levels, a cautious yet optimistic outlook.
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