Discover the Surprising Impact of the Latest Bitcoin Boom on Wealthy Investors – It’s Not What You Expected!
There has been a significant decrease in the growth of millionaires in the crypto space, according to latest data. This could be a signal that investors plan on capitalizing on their profits as the current bull run progresses. While the 2020-2021 bull run saw the birth of four thousand millionaires per day, this trend has slowed down drastically.
This could be due to a few reasons. To begin with, there has not been an influx of new capital in substantial force. This means that while there is interest in the market, the amount of investment flowing into the space is not as high as it was during the previous bull run. Another reason could be that large whales are taking advantage of the current high prices to sell their holdings and capitalizing on their profits. Additionally, there is a possibility that these wealthy investors are storing their bitcoins with custodians rather than personal wallets.
According to data from Kaiko, there are currently less than 2,000 new millionaire wallets being created in the crypto space on a daily basis. This is a significant decrease from the previous bull run, where over 4,000 millionaire wallets were being created daily. Moreover, during the previous uptrend, there were over 2,000 wallets with a balance of $10 million or more being created every day. This slower growth rate of millionaires indicates that the current bull run may not have reached its peak yet, and there is still potential for further growth.
The ongoing crypto bull run also saw Wall Street’s long-awaited spot exchange-traded funds (ETFs) being embraced. The market has been bullish on bitcoin this year, with the leading cryptocurrency experiencing a 70% increase in value and setting new record highs above $72,000. This follows last year’s surge of 155% from the depths of a bear market.
The slower growth rate of millionaires could also be a sign that the market is still in its early stages. With inflows into spot ETFs expected to continue and the impending halving-induced supply reduction, market consensus predicts that bitcoin prices will continue to rise in the coming months. Some experts even predict that prices could reach $150,000 or higher.
Recent data also shows a widening gap between the liquidity on the ask and bid sides of the order book within 2% of the market price. This suggests that there is a buildup of limit orders on the sell side, with investors looking to take advantage of the record highs and secure their profits.
In conclusion, the slower growth rate of millionaires in the crypto space could mean that the current bull run is still in its early stages. With the influx of new capital yet to reach full force and large whales taking profit as prices hit record highs, the market is showing signs of potential growth in the coming months. This slower growth rate also indicates that the bull run may not have peaked yet, and there is still room for further growth.
