Bitcoin’s price has once again reached a new milestone, surging past $73,000 on March 13. This impressive performance is not only attracting attention but also creating approximately 1,500 new “millionaires” every day, according to data from Kaiko Research.
The rise in Bitcoin’s price can be attributed to the influx of institutional capital into the market, driven by the recent approval of spot Bitcoin exchange-traded funds (ETFs). HODL15Capital, an independent investor, highlighted the increasing inflows into these ETFs, with a record $1 billion of net inflows on March 12. The popularity of spot Bitcoin ETFs has grown significantly, now accounting for nearly 90% of the daily trading volume market share for BTC exposure among ETFs.
The surge in Bitcoin’s price has resulted in the creation of approximately 1,500 millionaire wallets on a daily basis. This indicates the growing wealth accumulation within the cryptocurrency sector. However, it is worth noting that the current rate of millionaire growth is slower compared to the 2021 bull run. During that period, more than 4,000 wallets were reaching the million-dollar mark daily, while over 2,000 wallets were reaching $10 million.
The slower pace of millionaire growth can be attributed to factors such as a lack of new capital, profit-booking by whales as BTC reaches new all-time highs, and whales storing their holdings with custodians instead of personal wallets. Despite this, there is still steady growth in the overall number of Bitcoin addresses holding significant wealth, which highlights the increasing adoption and acceptance of Bitcoin as a store of value and investment asset.
Analysts have varying predictions for Bitcoin’s price in the future. Standard Chartered believes that BTC price could surpass $100,000 by the end of 2024. Hedge fund SkyBridge predicts a price of $170,000 by April 2025, while Fundstrat expects BTC to range between $116,000 and $137,000 by the end of this year. Investment management firm VanEck maintains its medium-term target at $350,000. Independent analyst Ted Talks Macro also expresses optimism, stating that funds are flowing into the Bitcoin market like never before and predicting a price of $100,000.
As Bitcoin continues its rally, market participants are eagerly anticipating the upcoming supply halving scheduled for April 2024, which is expected to further propel the price higher. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment or trading decisions.