Bitcoin’s remarkable surge in value is resulting in the formation of approximately 1,500 new “millionaire wallets” daily, as per insights from cryptocurrency analytics firm Kaiko Research.
These wallets are essentially digital addresses on the Bitcoin blockchain, where users can securely store their cryptocurrency.
While information like the number of tokens held in a wallet is publicly accessible due to the decentralized nature of the network, the anonymity of these addresses poses challenges in identifying their owners.
The original cryptocurrency has already witnessed a staggering 70% increase in value this year, propelled by optimism surrounding the soaring demand for US exchange-traded funds, which were permitted to hold Bitcoin starting in January.
Nevertheless, the rate at which new millionaire wallets are emerging is slower compared to the last bullish market surge in 2021, during which over 4,000 wallets were attaining million-dollar status daily. The peak for this year was reached on March 1, with 1,691 wallets.
Several factors may account for this deceleration. Firstly, the fresh capital infusion has yet to materialize in full force. Additionally, significant investors, often referred to as “whales,” are capitalizing on Bitcoin’s record highs by cashing out profits.
Furthermore, these whales are opting to store their holdings with custodians rather than in personal wallets, as highlighted in a report by Kaiko on Monday.
The report stated, “In 2021, there was a huge influx in the capital as all manner of bull sought to benefit from the crypto hype. This time around, whales could be taking a more cautious approach, waiting to see if the gains have legs before investing.”
