Bitcoin (BTC), the world’s most dominant cryptocurrency, has sustained its rally in 2024, surging by 70% to new record highs above $72,000.
This year’s rally marks another milestone for the leading cryptocurrency following a 155% surge in the previous year from the depths of a bear market.
However, despite the surge in prices, the creation of new Bitcoin millionaires has slowed compared to previous uptrends.
According to data tracked by Paris-based Kaiko, less than 2,000 millionaire wallets, defined as wallets holding $1 million worth of Bitcoin, are being created daily.
This figure is lower than during the last bull run, where over 4,000 millionaire wallets were created daily, along with more than 2,000 wallets holding $10 million balances.
Analysts suggest several factors contributing to this slowdown.
Firstly, new capital may have yet to fully enter the market. Also, large investors, known as whales, may be taking profits as Bitcoin reaches new highs.
Another factor could be that whales are storing their holdings with custodians rather than in personal wallets.
Despite the slower growth rate of new millionaires, market consensus remains optimistic about Bitcoin’s future trajectory.
With Wall Street’s increasing embrace of Bitcoin, particularly through spot exchange-traded funds (ETFs), many believe that the bull run is still in its early stages.
Continued inflows into ETFs, combined with the anticipated supply reduction from the upcoming halving event, could drive prices even higher. Some analysts predict that Bitcoin could reach $150,000 and beyond in the coming months.
However, signs of caution emerge as the gap between liquidity on the buy and sell sides widens, suggesting that investors may be looking to take profits near record highs.
The overall sentiment in the cryptocurrency market remains bullish, with Bitcoin’s rally showing resilience and strength in the face of market dynamics.
