Benzinga - Bitcoin’s (CRYPTO: BTC) value seems to be generating roughly 1,500 new “millionaire wallets” each day, reports Kaiko Research, a firm specializing in cryptocurrency analytics.
What Happened: These millionaire wallets refer to Bitcoin blockchain addresses where users keep their cryptocurrency. Since the blockchain is transparent and decentralized, anyone can see how many tokens each wallet contains, although the wallet owners’ identities remain hidden, making it unclear if they are individuals or organizations.
Bitcoin has experienced a surge of about 70% this year, fueled by enthusiasm surrounding the newly authorized exchange-traded funds (ETFs) that can now include the apex cryptocurrency. Nevertheless, the creation rate of new millionaire wallets is not as high as it was during the bullish streak of 2021.
At that time, over 4,000 wallets were hitting the million-dollar threshold every day. The peak for this year was on March 1, with 1,691 new millionaire wallets.
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Why It Matters: According to Kaiko’s Monday report, several factors might explain this slower growth rate. There’s the possibility that a substantial amount of capital hasn’t fully entered the market yet, or that large-scale Bitcoin holders— often referred to as ‘whales’ —are cashing in on their profits as Bitcoin reaches new heights. Another reason could be that these whales are choosing to keep their Bitcoin in custodial services instead of personal wallets.
The report states, “In 2021, there was a huge influx of capital as all manner of bulls 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."
Price Action: At the time of writing, BTC was trading at $72,009, up 4.84% over the last 24 hours, according to data from Benzinga Pro.
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