According to analytics firm Kaiko, new capital is not yet arriving in full as Bitcoin whales are slow to return
Analytics firm Kaiko says that despite hitting new all-time highs, Bitcoin (BTC) has yet to experience the full impact of new capital.
In a new report, Kaiko's research team says the crypto bull market is producing new Bitcoin millionaire whales at a much slower rate compared to the 2021 market cycle.
“Despite the recent price increase, on-chain Bitcoin whales are seeing slow returns. Using wallet data, we were able to calculate the number of millionaire wallets new each day and found that they remained under two thousand per day.
During the last bull run, more than four thousand wallets reached the million dollar mark daily and more than two thousand wallets reached the $10 million mark.”
Source: Kaiko
Kaiko believes that the slow return of Bitcoin millionaire whales could be due to three reasons.
“(1) New capital has yet to arrive in full force.
(2) Big whales take profits as BTC hits new highs.
(3) Whales keep their holdings in custodian banks rather than in personal wallets.”
According to the analytics firm, the data suggests that wealthy investors are taking a wait-and-see approach even as Bitcoin trades at all-time highs.
“There was a huge inflow of capital in 2021 as all sorts of bulls tried to capitalize on the crypto hype. This time, whales may be more cautious and wait to see if the gains hold before investing.”
At the time of writing, Bitcoin is trading at $71,482.
Don't miss a thing – Subscribe to receive email alerts straight to your inbox
Check price action
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
 
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that your transfers and transactions are at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated image: Midjourney
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.