Bitcoin Millionaires Surge as Crypto Market Poised for Bull Run

The cryptocurrency market is undergoing a significant transformation, as evidenced by a surge in individuals becoming millionaires through Bitcoin. In the year 2023, the number of Bitcoin addresses holding over $1 million has more than tripled, reaching an astonishing count of over 81,000.

This noteworthy increase, representing a growth of 237% since January, aligns with the upward trajectory of Bitcoin’s price, which has surpassed the $37,000 mark.

Multiplication of Bitcoin Millionaires

Bitcoin has been experiencing a remarkable rise, coming close to reaching $38,000 last week and maintaining a level around $37,000 in the early hours of Monday. This price surge demonstrates Bitcoin’s robust performance in the market and indicates the emergence of a broader trend within the cryptocurrency market. Indeed, the significant increase in the number of Bitcoin millionaires has been substantial, nearly tripling since the beginning of the year.

Short-term Bitcoin holders have also benefited from this surge by selling their holdings and accumulating profits exceeding $1.8 billion. This stands in contrast to long-term holders, who have been in an accumulation phase ahead of the upcoming Bitcoin halving event.

 

The current bullish trajectory of Bitcoin’s price and the growing number of millionaires in the market can be attributed to robust liquidity trends. According to data from Glassnode, a reputable on-chain market intelligence firm, the available supply of Bitcoin has reached an all-time low. This indicates a tightening supply and a reluctance among existing holders to sell their Bitcoin.

 

Rise in Institutional Interest

 

Furthermore, the open interest in Bitcoin and Ethereum has surpassed the $20 billion threshold, marking the first time since the FTX collapse. This surge in open interest reflects increased market activity and a heightened level of interest among market participants.

 

These trends are further reinforced by the growing involvement of institutional capital. The expanding market share of the Chicago Mercantile Exchange (CME) suggests that it is becoming a preferred platform for large traditional financial companies seeking exposure to the cryptocurrency market.

Moreover, despite the significant price surges, the order book depth for Bitcoin and Ethereum has tightened. This indicates a scarcity of sellers in comparison to buyers, providing additional support for the prevailing bullish market sentiment.

 

Furthermore, the annualized realized volatility for Bitcoin and Ethereum remains relatively low. This further strengthens the notion of stability within the ongoing market rally.

 

The current crypto rally, marked by substantial price increases in Bitcoin and altcoins such as Chainlink and Solana, signifies a shift in market dynamics. It could potentially initiate the next bull market, driven by institutional investors and a market that has relatively few sellers.