The ongoing rally in Bitcoin (BTC) is marked by Wall Street's long-awaited embrace of exchange-traded funds (ETFs). However, the rally is producing “millionaires,” but at a slower rate than the 2020-2021 uptrend.
The leading cryptocurrency by market cap has soared 70% this year, hitting new record highs of over $72,000. This rally comes on the heels of last year's 155% rally from the depths of a brutal bear market.
According to data tracked by Paris-based Kaiko, fewer than 2,000 millionaires or $1 million worth of Bitcoin are created daily. This is significantly lower than the last bull market, which produced more than 4,000 millionaire wallets daily and more than 2,000 wallets with $10 million balance daily.
The slow pace may mean that the uptrend is still in its early stages, and the pace of inflows has not yet reached its peak. The conclusion is consistent with the market consensus that prices could rise to $150,000 and more in the coming months due to continued inflows into spot ETFs and the impending supply reduction resulting from the halving.
“this [slower growth rate of millionaires] This may be due to several things: (1) The new capital has not yet arrived in full force. (2) Big whales take profits as BTC reaches new highs. (3) Whales store their possessions in custodians, rather than personal wallets,” Kaiko said in the weekly newsletter.
Recently, the gap between liquidity on the ask sides and demand on the order book within 2% of market price has widened to nearly five times as usual, indicating a build-up of limit orders on the sell side – a sign that investors are looking to take profits near… Record levels.
