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, approximately 1,500 new million-dollar wallets are being created every day. However, this number is not as high as the previous bull market.
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Table of Contents
Funding rates remain high
Sell orders exceed buy orders
Approximately 1,500 new million-dollar wallets created daily
Bitcoin approached a new all-time high of $73,000 on the 12th, with a surge of over 67% in just three months this year. On the 11th, Kaiko Research released a report stating that Bitcoin’s trading volume in the past week has been strong, with a spot trading volume of $51 billion on the 5th, reaching a new high since 2021 and surpassing the trading volume during the last bull market peak in November 2021.
Bitcoin daily trading volume changes. Image source: Kaiko
In the past week, there have been a large number of liquidations 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 rates have also fallen from high levels but remain high, indicating continued strong bullish demand.
Bitcoin derivatives open interest and funding rates. Image source: Kaiko
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 order depths. Since the beginning of 2021, sell orders have far exceeded buy orders within a 2% range from the average price, indicating that traders have been taking profits as Bitcoin reaches new highs.
Bitcoin buy and sell order depth changes. Image source: Kaiko
Overall, Kaiko suggests that as Bitcoin continues to rise, the liquidity of centralized exchanges is maintaining a synchronous trend, indicating strong demand and some profit-taking, supporting a healthy and responsive market.
It is also worth noting that during this record-breaking surge, approximately 1,500 new “million-dollar wallets” are being created daily, with the highest number occurring on the 1st with 1,691 new million-dollar wallets created.
However, during the previous bull market, there were over 4,000 new million-dollar wallets created daily, including over 2,000 new ten-million-dollar wallets.
Bitcoin million-dollar and ten-million-dollar wallet additions. Image source: Kaiko
Kaiko believes that the slowdown in the number of new million-dollar wallets may be due to three main reasons:
1. New capital has not fully flowed in.
2. Whales are starting to take profits as Bitcoin reaches new highs.
3. Whales are storing their Bitcoin in custodial institutions rather than personal wallets.
Kaiko’s conclusion is that in 2021, with a large influx of capital, everyone wants to get a piece of the cryptocurrency boom. 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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