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12.03.2024 04:31 PM
Bitcoin could rise to $150,000 and even higher in the coming months

Amidst the continuous rise of Bitcoin, data tracked by Kaiko from wallet addresses reveals a slowdown in the increase of Bitcoin millionaires. Kaiko notes that this deceleration is attributed to several factors, including investors taking profits amid the cryptocurrency price surge.

Growth rates for 2020–2021 exceeded current trends

While the current surge began with the introduction of ETF funds on Wall Street, the growth in the number of new Bitcoin millionaires seems sluggish compared to the upward trend seen in 2020–2021.

Despite BTC's impressive 70% growth this year, reaching $73,000 and setting new records, the pace of Bitcoin millionaire growth remains lower than in previous bullish market periods.

Kaiko's data indicates that fewer than 2,000 millionaire wallets are created daily, each containing one million dollars' worth of Bitcoin. This contrasts with the previous bullish period when over 4,000 millionaire wallets were created daily, with over 2,000 having a balance of 10 million dollars each.

The stagnation in Bitcoin millionaire growth may suggest that the current bullish trend is possibly still in its early stages, and new capital has not yet peaked. However, market analysts argue that ongoing investments in ETF funds and the anticipated supply reduction due to the upcoming halving of rewards for the 4th block could propel the price of Bitcoin to $150,000 and even higher in the coming months.

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Reasons for the slowdown

Kaiko also points out several possible reasons for the slowdown in the growth of the number of Bitcoin millionaires, including delays in new capital inflows, large investors taking profits as Bitcoin reaches new highs, and a shift towards storing assets with custodians rather than in personal wallets.

Moreover, recent data shows an increasing gap between buying and selling side liquidity in the order book, with limit orders concentrating on the selling side. This may indicate that investors are inclined to lock in profits at the current record levels.

Factors driving Bitcoin growth

Meanwhile, a crypto analyst known by the pseudonym Pentoshi, who claimed the end of the 2021 bull market, asserts that investors should reconsider their perspective on Bitcoin.

He suggests that investors seeking peaks should consider a longer-term perspective. In his opinion, several factors have aligned to open up new growth opportunities for Bitcoin. He also points to the historical growth of Bitcoin ETFs:

"I think the correct way to view crypto, as opposed to always trying to call tops right now is to widen your time horizon.
The BTC exchange-traded fund (ETF) was the most bullish ETF in history. The suits love it, people wanted it and didn't know how to buy it. It will become easier to use, with a better user interface, and more people will be onboarded.
Central banks will print money, they always have and have shown they can't stop. So, no matter what, this should in theory drift up and to the right on any large time frame.
When Covid happened, I originally thought that those types of stimmies would never happen again, and maybe they won't.
But what did happen is a generational mindset shift where people are online more, they gamble more, and in the current world system, this may be the only way out.
So stop trying to call tops, zoom out, and think about where it's heading a decade from now. Higher."

Bullish sentiments continue: MicroStrategy buys cryptocurrency

There is also news that from February 26 to March 10, MicroStrategy acquired 12,000 BTC totaling $821.72 million at an average price of $68,477.

As of writing, MicroStrategy held 205,000 BTC totaling $9.9 billion, with an average acquisition cost of $33,706. At current market prices, the profit from these investments could reach $7.9 billion.

The funding for this purchase was secured through $782 million raised from the issuance of convertible bonds.

At the time of publication, MicroStrategy surpassed BlackRock in the number of Bitcoins on its balance sheet due to its recent acquisitions. BlackRock held 195,985.31 Bitcoins through its Bitcoin trust IBIT iShares, which was less than MicroStrategy's holdings.

The analysis of assets under management (AUM) for GBTC returned to a level around $28 billion, comparable to the level before the emergence of ETFs, due to the rise in Bitcoin prices.

There continues to be a significant outflow of funds from GBTC, which may indicate that investors may be waiting for regulation or a decline in Bitcoin prices before re-entering the market.

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