New BTC Millionaire Wallets Decline Despite Price Surge

Since hitting $72,000, the number of Bitcoin (BTC) millionaire wallets has increased by almost 1,500 per day.

However, the daily increase in these wallet owners pales compared to the previous BTC bull run.

Number Of New BTC Millionaire Wallets Tumbles

Recent data from Kaiko, a prominent crypto analytics firm, indicates a notable decline in new BTC millionaire wallets. According to the analytics platform, the recent figure marks a departure from the peak period of BTC’s previous bullish momentum in Nov. 2021. That bull run was characterized by BTC’s all-time high (ATH) of $69,000.

At that time, over 4,000 new millionaire wallets and more than 2,000 addresses held at least $10 million in BTC daily. Kaiko posits that the sluggish growth may be attributed to the cautious entry of new investment entities.

The crypto analytics firm suggests that investors have now adopted a wait-and-see approach, assessing the sustainability of the current price surge before committing additional investment funds. Kaiko also proposed that another contributing factor to the subdued creation of new millionaire wallets is an increasing preference among BTC whales for custodial services over personal wallets. This shift in custody preference directly influences the establishment of new BTC millionaire wallets.

An Early Phase Of The Bull Run?

Nevertheless, some industry analysts believe that the drop in the creation of new BTC millionaire wallets signifies that the current bull market is still in its early phases. This perspective resonates with the industry’s expectation that BTC’s value could ascend to $150,000 or even higher in the coming weeks.

This prevailing optimism stems from the continual investment inflow into spot BTC exchange-traded funds (ETFs) and the anticipated reduction in BTC supply associated with the upcoming halving event. Recent market trajectory highlights a notable expansion in the gap between the liquidity of sell orders and buy orders to within 2% of BTC’s market price.

This widening gap (nearly five times the standard size presently) suggests an increased sell limit orders. Such a trend implies that investors are positioning themselves to capitalize on gains as the asset’s price steadies at its historical all-time high.