Bitcoin’s surge resulting in the formation of millionaire portfolios on a daily basis
Bitcoin’s recent surge to an all-time high has reportedly led to the creation of approximately 1,500 ‘millionaire wallets’ each day. While the public nature of Bitcoin’s network allows for visibility into the number of tokens held by each wallet, the anonymity of these addresses makes it difficult to determine the owners. This year, Bitcoin has experienced a 70% increase in value, driven by the excitement surrounding the newly approved Bitcoin ETFs that began trading in January. However, the rate at which millionaire wallets are being created is not as high as during the 2021 bull market, when over 4,000 wallets daily reached the million-dollar threshold. According to crypto analytics firm Kaiko Research, the peak for this year occurred on March 1, with 1,691 wallets.
Several factors could be contributing to this slower pace of wealth creation. The market may be waiting for significant new investments as large investors, or whales, may be cashing in their profits at Bitcoin’s new highs. These investors are choosing to secure their assets with custodial services instead of personal wallets, according to Kaiko’s report.
With Bitcoin reaching an all-time high of $72,600 today, every investor who has ever entered and stayed in the Bitcoin market is enjoying profits. This latest rally also highlights that Bitcoin’s value has increased almost every year since its inception, except for 2015, 2019, 2022, and 2023. This demonstrates that Bitcoin has remained a more stable asset compared to fiat currencies like the USD, which has experienced annual declines since 2009 due to inflation.
