This week has been eventful for Bitcoin. The main cryptocurrency finally confidently crossed the $ 20 thousand line and set a new all-time high above the $ 23 thousand line.
This event was facilitated by several large investments from popular investors at once. In addition, due to the rise in the price of BTC, the number of cryptocurrency millionaires has officially increased in the world.
We checked the actual data: today, there are really enough rich people in the niche of the first cryptocurrency. There are more than 100 thousand dollars in BTC on 268 728 addresses, at least a million can be boasted by the owners of 68 107 addresses, and more than 10 million are on 4 467 addresses.
The richest address is the Huobi cryptocurrency exchange cold wallet. It currently contains 141,452 bitcoins, that is, more than $ 3.2 billion. This is what the top ten most secured addresses look like.
Why is Bitcoin growing?
So, the final jump in the price of Bitcoin was «sponsored» by three whales at once. The first is London-based investment firm Ruffer LLP, which, without much fanfare, announced that it would invest $ 744 million, or 2.5 percent of its fund’s capital, in Bitcoin.
The second is investment firm American Express Ventures, which doubled its initial $ 17 million investment in FalxonX, a digital asset trading platform. Finally, the third, and perhaps the most visible trigger was the actions of the CEO of One River Asset Management, Eric Peters.
He founded a separate firm, One River Digital, to invest $ 600 million in cryptocurrencies. The volume of investments is planned to be increased to $ 1 billion in early 2021.
As a side note, Peters was secretly buying bitcoins prior to November to supposedly lower the average cost of acquiring coins without alerting his fellow investors. Eric strongly resembles a canary in a coal mine, only instead of a mine there is an investment industry. His private weekly investment newsletter, Weekend Notes, is read by a group of investors who own over a trillion dollars in assets. That is, what Peters does is often repeated by others.
Accordingly, one can expect that the other moneybags, if they do not do the same trick with Bitcoin, will at least think about the expediency of investing in cryptocurrency.
Investor optimism about the future of Bitcoin is partly supported by the actions of the US Federal Reserve System, which recently announced the continuation of the program to support the economy through asset repurchases. In recent months, the Fed has been actively buying US Treasury bonds and mortgage-backed securities for an average of $ 120 billion a month.
Bitcoin’s jump to 23 thousand dollars after all these events gave the world many new crypto millionaires. According to the analytical platform Glassnode, in just one day, the number of cryptocurrency wallets with bitcoins worth over a million dollars increased by 150 percent – up to 66,540 units.
For clarity, we present a graph that illustrates this situation. It was shared by Decrypt representatives.
As we have already noted, today there are already more than 68 thousand owners of the equivalent of a million dollars in BTC.
Glassnode CTO Rafael Schulze-Kraft noticed an interesting fact: to be considered a crypto-millionaire today, you only had to mine one block of Bitcoin between 2009 and 2012, when the block reward was 50 BTC, and not sell cryptocurrency until now.
Note that the aforementioned number of addresses is not equal to the real number of the rich: many wallets can belong to one person, company or exchange. The latter use different addresses to reduce risks and not be left with anything in the event of a hacker attack. And they, as you know, have recently been distinguished by a very large appetite.
So in the end, cryptocurrency enthusiasts assume that the current growing attention to Bitcoin and the niche of coins in general from well-known investors will be enough to popularize cryptocurrency. As a result, all this will end with the arrival of retail depositors in the niche, which will provide another historical maximum for BTC. We believe that this option is quite probable, because large investors initially work ahead of the curve. So it should be more interesting further.
To make a fortune on Bitcoin one day, too, choose the most profitable investment opportunities.
