Crypto Millionaire Whales Appear at Slower Speed

Crypto Millionaire Whales Appear at Slower Pace in Bitcoin’s Bull Run

14 March 2024

In the middle of Bitcoin’s persistent bull run, characterised by rising prices and heightened investor interest, a curious trend is developing – the creation of crypto millionaire whales appears to be unfolding at a slower pace than previous historic highs.

Bitcoin Whale Wallet Tracker Data

Wallet data meticulously tracked by Paris-based Kaiko discloses a notable slowing in the growth of bitcoin millionaires or whales, defined as wallets holding at least $1 million worth of the cryptocurrency. This revelation comes as Bitcoin grows by a staggering 70% this year alone, surpassing the $72,000 mark and setting new record highs.

How Many Millionaires Did Bitcoin Make?

Contrasting starkly with the explosive uptrend witnessed during the 2020-2021 bull run, where over 4,000 millionaire wallets were being minted daily along with 2,000 wallets boasting balances exceeding $10 million, the current trajectory suggests a more tempered pace of wealth accumulation.

Experts suggest several factors might be contributing to this phenomenon:

  • The influx of new capital into the market has yet to reach its full potential, indicating that the bull run may still be in its emerging stages.
  • Large bitcoin whales could be capitalising on the growing prices by cashing out profits, thereby reducing the rapid creation of millionaire wallets.
  • There’s a possibility that whales are opting to store their holdings with custodians rather than personal wallets, potentially changing the observable data.

Kaiko, in its weekly newsletter, deliberates on the potential implications of this slower growth rate. It speculates that the bull run might still have room to accelerate, especially in light of the ongoing influx into spot ETFs and the looming halving-induced supply reduction. Market consensus suggests that Bitcoin’s price could climb to $150,000 and beyond in the coming months as these factors continue to unfold.

Recent market observations further support this narrative. The gap between liquidity on the ask and bid sides of the order book, particularly within 2% of the market price, has widened significantly. 

Such a disparity typically signifies a buildup of limit orders on the sell side, indicating that investors are keen to capitalise on profits near the current record highs.

Final Thoughts

The bitcoin bull run history continues to unfold, and the pace at which crypto millionaire whales occur serves as a vital indicator of market dynamics. While the slower growth rate may hint at a more cautious approach from large investors, it also underscores the development of the cryptocurrency ecosystem. Whether this trend persists or accelerates remains to be seen, but one thing is sure – Bitcoin’s meteoric rise is reshaping the field of wealth creation in unprecedented ways.

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