The cryptocurrency market is experiencing a significant change, as evidenced by the increase in the number of Bitcoin millionaires. By 2023, the number of addresses holding over $1 million in Bitcoin will more than triple, reaching a staggering number of over 81,000.
This remarkable increase, representing a growth of 237% since January, coincides with the rise in Bitcoin prices, surpassing the $37,000 threshold.
Bitcoin millionaires are multiplying
Bitcoin has seen a remarkable rise, approaching $38,000 last week and hovering around $37,000 in the early hours of Monday. This price increase reflects the strong performance of the Bitcoin market and indicates that a broader trend is taking shape in the crypto market. Indeed, the increase in the number of Bitcoin millionaires has been substantial, almost tripling since the start of the year.
Short-term Bitcoin holders also benefited from this upsurge by selling and reaping over $1.8 billion in profits. This contrasts with long-term holders, who have been in a accumulation phase before the next Bitcoin halving.
“The majority of inflows into the exchanges are attributed to short-term holders, indicating significant profits from the recent rally. Short-term Bitcoin holders have potentially made profits, and this activity could influence market dynamics,” a verified author on CryptoQuant. said.
This upward trend in Bitcoin price and the growing number of millionaires in the market are supported by strong liquidity trends. Data from Glassnode, a leading on-chain market information company, suggests that the available supply of Bitcoin has reached an all-time low, indicating a tightening of supply and a reluctance among existing holders to sell.
Peaks of institutional interest
Additionally, open interest in Bitcoin and Ethereum has crossed the $20 billion mark for the first time since FTX collapse. This indicates increased market activity and an increased level of interest.
Indeed, these trends are also supported by institutional capital. THE increase in market share of the Chicago Mercantile Exchange (CME) suggests that this is a prime location for large, traditional financial firms to gain exposure to crypto.
“Bitcoin eventually Open interest on CME has surpassed Binance, a sign that institutions are serious about getting their feet wet and betting on a potential exchange-traded fund (ETF) spot approval. Perpetual funding continues to be elevated, while futures and risk reversals continued to advance throughout the week,” QCP Capital analysts. said.
Additionally, the order book depth for Bitcoin and Ethereum has tightened despite the sharp price increases. This suggests a relative lack of sellers compared to buyers, further reinforcing bullish market sentiment.
The annualized achievement volatility for Bitcoin and Ethereum also remains relatively weak, further reinforcing the stability of the current market recovery.
“Right now, funding rates are at the highest level since October 2021, when Bitcoin reached its last all-time price. This value suggests that optimism prevails in the market, pushing a large number of futures contracts to bet on an increase in prices,” Cauê Oliveira, head of research at BlockTrends, said.
The ongoing crypto rally, characterized by a significant increase in the prices of Bitcoin and altcoins like Chain link And Solana, indicates a change in market dynamics. This could trigger the next bull market, driven by institutional investors and a market with relatively few sellers.
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