Yahoo Finance Bitcoin’s Surge Produces 1,500 New ‘Millionaire Wallets’ Every Day — How You Can Invest
Bitcoin prices are over $63,000 as of April 18, 2024, and crypto analytics firm Kaiko Research said the recent rally is creating around 1,500 “millionaire wallets” daily.
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During the last bull run, Kaiko Research noted that over 4,000 digital wallets reached millionaire status daily, and more than 2,000 wallets reached $10 million. In 2021, there was a flood in capital and bulls were looking to benefit from the hype. This time, Kaiko Research said whales could be taking a more cautious approach.
The firm explained that what we’re seeing today could be due to several reasons: New capital hasn’t arrived in “full force,” large whales are taking profit as BTC hits new highs, or whales are storing their holdings “with custodians rather than personal wallets.”
Here’s the current outlook and how you can invest.
An Optimistic Outlook
BTC gained 116% over the past year, driven by a more optimistic economic outlook, the recent approval of spot Bitcoin ETFs and the halving of Bitcoin mining rewards, according to The Motley Fool. The publication noted that several Wall Street analysts believe these factors will drive the digital coin even higher in the future, and forecasts suggest an upside ranging between 525% and 5,800% from the current price.
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Why Bitcoin Could Move Higher
According to The Fool, there are two catalysts that could push Bitcoin higher.
Spot Bitcoin ETFs were recently approved, which is an exchange-traded fund that tracks the current price of Bitcoin. These funds are highly liquid and change price throughout the trading day, similar to stocks. The Motley Fool reported that this could allow investors to consolidate accounts and eliminate high transaction fees.
The launch of spot Bitcoin ETFs has been a success. Funds issued “by BlackRock and Fidelity saw more inflows during the first month of trading than any other ETFs in history, according to Eric Balchunas at Bloomberg,” as Nasdaq reported. The Wall Street Journal also reported that the iShares Bitcoin ETF by BlackRock reached $10 billion in assets faster than any ETF, per The Motley Fool.
However, Bitcoin mining rewards will be cut by 50% this April — an event which happens every four years. Global investment manager VanEck claimed that this controls the supply of the digital coin and helps keep its value stable over time. On a positive note, The Motley Fool explained that halving events help to relieve selling pressure for miners.
No Guarantees on Bitcoin Price
Cryptocurrencies are still extremely volatile, and not everyone is so optimistic. Although the forecasts are positive, there’s no guarantee that Bitcoin will move higher from where it currently trades.
Even billionaire investor Warren Buffet has dismissed Bitcoin and other cryptocurrencies, claiming that it’s an unproductive asset with no real value. He also doesn’t believe that it counts as true currency, and even went as far as to call it “rat poison,” reported Investing News Network.
However, The Motley Fool pointed out that Bitcoin outperformed nearly every asset class over the last five years. The above catalysts could push prices higher over the next five years.
How To Invest in BTC
Investors can purchase Bitcoin through a stock broker, which is similar to buying shares of a company.
Another option is to join an exchange with a crypto wallet. Many first-time investors opt for a software-based or “hot” wallet maintained by their crypto exchange or operated by a service provider, Investing News Network reported. These are convenient and simple to set up, but the publication warned that hot wallets tend to be less secure and can be compromised by data breaches. There are also “cold” wallets, which are specialized hardware wallets designed to store cryptocurrency. This is recommended if you plan to invest a significant amount in crypto.
Once you set up your wallet, you can connect either the wallet or your crypto exchange account to your bank account, but it’s not necessary. Once the wallet and exchange account are set up, you’re ready to go.
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This article originally appeared on GOBankingRates.com: Bitcoin’s Surge Produces 1,500 New ‘Millionaire Wallets’ Every Day — How You Can Invest
