Cryptocurrency analysis firm Kaiko Research released a report on the 11th stating that the daily spot trading volume of Bitcoin has reached a new high since 2021, and currently, about 1,500 new million-dollar wallets are created every day. However, this number is not as high as the previous bull market.
Bitcoin reached a new all-time high on the 12th, approaching $73,000, with a surge of over 67% in just three months this year. Kaiko Research released a report on the 11th stating that the trading volume of Bitcoin in the past week has been quite strong, with the spot trading volume surging to $51 billion on the 5th, reaching a new high since 2021, surpassing the trading volume during the previous bull market peak in November 2021.
In the past week, there has been a significant amount of liquidation in the Bitcoin derivatives market, intensifying market volatility. The open interest of Bitcoin perpetual contracts increased by nearly $2 billion on the 4th, reaching a multi-year high of $15 billion, and then decreased by $1.4 billion. The funding rate has also fallen from a high level but remains high, indicating that the bullish demand is still strong.
The market depth, which measures the amount of Bitcoin orders, has also shown a steady upward trend in the past few months, reaching over $600 million last week. However, Kaiko pointed out that there is a serious imbalance in the distribution of buy and sell orders within a 2% range from the average price since the beginning of 2021, with sell orders far exceeding buy orders. This indicates that traders have been taking profits as Bitcoin reaches new highs.
Overall, Kaiko stated that as Bitcoin continues to rise, the liquidity of centralized exchanges maintains a synchronous trend, indicating strong demand and some profit-taking, supporting a healthy and responsive market.
It is worth noting that during this record-breaking rally, about 1,500 new million-dollar wallets are created daily, with the highest number occurring on the 1st with 1,691 new million-dollar wallets added. However, during the previous bull market, there were over 4,000 new million-dollar wallets created daily, with over 2,000 new ten-million-dollar wallets added.
Kaiko believes that the slowdown in the number of new million-dollar wallets may be due to three main reasons: new capital has not fully flowed in, whales have started to take profits as Bitcoin reaches new highs, and whales are holding Bitcoin in custodial institutions rather than personal wallets.
In conclusion, in 2021, with a large influx of capital, various sectors are eager to profit from the cryptocurrency frenzy. However, this time, whales may adopt a more cautious strategy and assess whether there is still room for growth before investing.
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