Bitcoin, which recently hit a record high of $73,000, has since shown signs of retreating. During Bitcoin’s last surge, it was reported that approximately 1,500 individuals were catapulted into the millionaires’ club daily.
Blockchain technology often brings cryptocurrency to mind, with Bitcoin leading the pack. Since the year’s start, Bitcoin has seen a significant uptrend. The market’s recovery, coupled with anticipation of the Bitcoin halving, has sparked discussions about the onset of a bullish phase. This month, Bitcoin reached an unprecedented high of $73,000, then dipped to $62,000 before climbing back to $65,000.
A study by blockchain analytics company CryptoQuant suggests that Bitcoin is still in a bullish phase, dispelling concerns among some investors. Kafkas Sönmez, Global Growth Director at Gate.io, commented on the findings, stating, “The report highlights the modest influx of new investors and points out that price valuation metrics remain below those observed at previous peaks. A bull cycle is considered over when new investors contribute between 84% to 92% of capital inflow; currently, this figure stands at 48% for Bitcoin.”
1,500 new millionaires every day…
The report compared the recent fluctuations in Bitcoin’s price to the corrections seen in 2019, noting that cash inflows from new Bitcoin investors constituted less than half of the total money inflows. Based on this observation, the report suggests that the recent downturns in Bitcoin are merely corrections and that the bullish trend is likely to persist.
The report further highlighted that profits realized from Bitcoin have surpassed $3.5 billion, reaching a new peak. Referring to a study analyzed at the time cryptocurrencies peaked, Sönmez mentioned, “During the bull run, we observed that Bitcoin was turning 1,500 individuals into millionaires on a daily basis. While the identities of these individuals or whether they are persons or institutions remain anonymous due to wallet privacy, it is evident that Bitcoin serves as a means for substantial short-term gains. Nonetheless, the growth in the number of Bitcoin millionaires has slowed down, primarily due to profit-taking activities by large investors and possibly because new investors have yet to embrace Bitcoin. Despite these factors, the recent bull market has created over 4,000 investors with wealth exceeding $10 million.”
Regarding Bitcoin’s bullish phase, it’s a compelling phase in the cryptocurrency’s journey, showcasing both its volatility and its potential for substantial returns. Whether this period will continue is subject to various factors, including market sentiment, regulatory developments, and broader economic conditions. However, the resilience and growth trajectory of Bitcoin thus far suggest a strong interest and confidence among investors, possibly indicating that the bullish trend might have more room to run.
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