Following Bitcoin's recent surge to $72,000, the number of new daily "millionaire" wallets has seen an uptick to approximately 1,500, although this increase remains overshadowed by the figures seen during the previous bull run. The rise in daily million-dollar Bitcoin wallets has been notable, climbing from less than 500 in January to nearing the 2,000 mark as reported by Kaiko Research on March 11. However, this surge is a far cry from the peak witnessed during the previous bull run when over 4,000 wallets per day joined the millionaire ranks, with an additional 2,000 wallets crossing the $10 million threshold daily.
Despite the recent price rally, returns for on-chain Bitcoin whales have been relatively modest, indicating a cautious approach among investors. The current pace of new Bitcoin millionaires being minted daily is reminiscent of levels observed in July 2022 when Bitcoin experienced a downturn below $20,000. Kaiko attributes this subdued growth to the slow deployment of new capital and the likelihood of existing whales capitalizing on the market's highs by taking profits.
One factor potentially influencing the subdued growth in millionaire wallets is the possibility that more whales are opting to keep their assets with custodians rather than in personal wallets. This shift could be a response to increased regulatory scrutiny and a desire for enhanced security and convenience. Additionally, the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States may have diverted some investor capital away from direct Bitcoin ownership, affecting the growth rate of millionaire wallets.
The emergence of spot Bitcoin ETFs has been a significant development, with nine new ETFs amassing over $28 billion in value since their introduction in January, according to data from BitMEX Research. Custodians such as Coinbase and BitGo play a pivotal role in managing the assets of these ETFs. Unlike direct Bitcoin holders, investors in spot Bitcoin ETFs hold shares in the ETF, leading to a disparity in whale wallet data as their indirect Bitcoin holdings are not reflected.
Despite these factors, the overall number of Bitcoin millionaire wallets witnessed a substantial increase of nearly 300% in 2023, reaching 90,000, according to Glassnode. This surge reflects renewed interest and participation in the Bitcoin market, driven by price appreciation and growing institutional adoption. As Bitcoin continues to soar, currently priced at $72,200, the dynamics of wealth distribution within the cryptocurrency ecosystem are likely to evolve further.
