Slower Pace, More Precision: Bitcoin Bull Run Creates Millionaire Whales with Caution

Recent wallet data from Kaiko indicates a deceleration in the growth of on-chain Bitcoin whales or millionaires, signaling various factors, including investors opting for profit-taking strategies.

Despite Bitcoin’s 70% surge this year, reaching new highs above $72,000, the creation of millionaires—wallets with $1 million worth of Bitcoin—has dipped to less than 2,000 per day. This figure starkly contrasts the previous bull run, which saw over 4,000 millionaire wallets and more than 2,000 wallets with a $10 million balance generated daily.

The subdued growth rate might suggest that the bull run is in its early stages, with the influx of capital yet to peak. Market consensus aligns with the expectation of Bitcoin prices reaching $150,000 and beyond in the coming months, driven by continuous inflows into spot ETFs and the imminent halving-induced supply reduction.

Kaiko’s weekly newsletter speculates on the reasons for the slower growth: (1) New capital might not have fully entered the market yet. (2) Large whales could be capitalizing on BTC’s new highs by taking profits. (3) Whales might be choosing custodians over personal wallets for storing their holdings.

The recent widening gap between liquidity on the buy and sell sides of the order book near the market price signals a fivefold increase, indicating an accumulation of sell-side limit orders. This suggests that investors are strategically aiming to profit near the current record highs.