Bitcoin’s meteoric rise to new all-time highs is minting a fresh wave of crypto millionaires, with approximately 1,500 wallets joining the millionaire club each day, according to data from crypto analytics firm Kaiko Research.
The public nature of Bitcoin’s blockchain allows for visibility into the number of tokens each wallet holds, albeit without revealing the identities of the owners. As the flagship cryptocurrency surged to a record high of $72,600, every investor who has held onto their Bitcoin investments since entering the market is now sitting on substantial profits.
While the rate of millionaire wallet creation is impressive, it pales in comparison to the 2021 bull market, which saw over 4,000 wallets daily reach the million-dollar threshold. This year’s peak occurred on March 1, with 1,691 wallets crossing the seven-figure mark, according to Kaiko Research.
Several factors could be contributing to this more moderate pace of wealth creation. Large investors, or whales, may be cashing in their profits at Bitcoin’s new highs, leading to a slower accumulation of millionaire wallets. Additionally, institutional investors are increasingly opting to secure their assets with custodial services rather than personal wallets, as highlighted in Kaiko’s Monday report.
Despite the slower pace, Bitcoin’s latest rally is a testament to its resilience and growing mainstream acceptance. The original digital currency has climbed by about 70% this year, driven by enthusiasm for the newly approved Bitcoin ETFs that began trading in January.
Furthermore, Bitcoin’s value has increased almost every year since its inception, except for 2015, 2019, 2022, and 2023, making it a more stable asset than fiat currencies like the USD, which has declined yearly since 2009 due to inflation.
As Bitcoin continues to solidify its position in the financial landscape, the creation of new millionaire wallets is expected to persist, albeit at a more measured pace than the frenzied bull market of 2021. Nonetheless, the surge in millionaire wallets serves as a testament to the growing wealth-generating potential of the world’s leading cryptocurrency.
