Bitcoin’s record-breaking rally appears to be creating around 1,500 new “millionaire wallets” daily,
Bitcoin's remarkable surge is reportedly generating approximately 1,500 new "millionaire wallets" daily, as indicated by crypto analytics firm Kaiko Research.
These wallets are digital addresses on the Bitcoin blockchain, where users can store cryptocurrency. Since the network is public and not controlled by any centralized intermediaries, data such as the number of tokens a wallet holds is accessible. However, the anonymity of the addresses makes it difficult to determine whether they belong to individuals or entities.
The original cryptocurrency has already surged by around 70% this year, driven by excitement over the increasing demand for US exchange-traded funds, which were permitted to hold the tokens starting in January. Nevertheless, the rate at which new millionaire wallets are being created is slower than during the last bull-market run in 2021, when more than 4,000 wallets were reaching the million-dollar mark daily. The peak for this year was 1,691 wallets on March 1.
The slower pace could be attributed to several factors. New capital has not yet entered the market in full force, and large investors, known as whales, are taking profits as Bitcoin reaches new highs. Additionally, whales are storing their holdings with custodians rather than personal wallets, according to Kaiko's report on Monday.
"In 2021, there was a huge influx of capital as everyone wanted to benefit from the crypto hype," the report stated. "This time around, whales could be taking a more cautious approach, waiting to see if the gains are sustainable before investing."