Join Our Telegram channel to stay up to date on breaking news coverage
The Bitcoin rally is boosting more than 1,500 BTC wallets past the million dollar mark on a daily basis, Kaiko Research says
But that is still a substantially lower number than the more than 4,000 wallets that were reaching millionaire status daily during the previous bull run in 2021, and two thousand hitting $10 million, Kaiko said in a March 11 report.
There are a number of potential reasons why whales are slow to return to the market this time, including a lack of new capital entering the crypto space ”in full force,” and large ”whales” either taking profit with BTC at new all-time highs or storing their holdings with custodians, rather than personal wallets, it said.
“In 2021, there was a huge influx in capital as all manner of bull sought to benefit from the crypto hype,” it said. ”This time around, whales could be taking a more cautious approach, waiting to see if the gains have legs before investing.”
So far, this year’s record for the number of BTC millionaire wallets created in a day stands at 1,691 on Mar. 1.
Bitcoin Demand Strong Despite Higher Sell Orders
The Bitcoin price has been on a strong upward trajectory ever since spot Bitcoin ETFs (exchange-traded funds) launched in the US on Jan. 11, and has surged 50% in the last month, according to CoinMarketCap data.
Following BTC’s positive movement over the last week, which also saw the leading crypto break $72k for the first time for a new all-time high, there has been a large amount of liquidations in the derivative markets, the report said.
Amid last week's volatility, derivative markets saw a significant amount of liquidations.#BTC open interest rose by nearly $2bn on March 4, hitting a multi-year high of $15bn before crashing the next day. pic.twitter.com/ssuXPbmVkp
— Kaiko (@KaikoData) March 11, 2024
Open interest for Bitcoin perpetual contracts also rose by almost $2 billion on Mar. 4 to hit a multi-year high of $15 billion. However, it declined back to $1.4 billion the day after.
Following the liquidations, bullish demand for BTC still seems to be strong, as funding rates remain high even after a slight drop, said the report.
🚀 #BTC market depth, measuring the quantity of bids and asks on BTC order books, has been on a steady upwards trend over the past few months, hitting more than $600mn last week. pic.twitter.com/Sq2UTITGk9
— Kaiko (@KaikoData) March 11, 2024
However, this demand is clouded by a strong “mismatch” between bid and ask depth. Currently, the number of sell orders “far surpasses” the number of buy orders, added the firm.
Related Articles:
- PRESALE CRYPTO LIST: Top Upcoming Cryptocurrencies to Invest in 2024
- Institutional Investors To Unleash More Massive Bitcoin ETF Buying, BTC May Soar Past $200k This Year, Bitwise Says
- XRP Price Prediction: XRP Soars 15% On Large Binance Transfers, But Traders Turn To This New Meme Coin That Pumped 65% In A Week
Most Searched Crypto Launch - Pepe Unchained
- Layer 2 Meme Coin Ecosystem
- Featured in Cointelegraph
- SolidProof & Coinsult Audited
- Staking Rewards - pepeunchained.com
- $40+ Million Raised at ICO - Ends December
Join Our Telegram channel to stay up to date on breaking news coverage