The term “Bitcoin Millionaires” has become widely understood. This grew out of a massive rise in the price of the digital asset that continued to reduce the number of BTC required to be a millionaire. A number of bitcoin millionaires lost their status when the price of the digital asset fell. However, with the recovery of Bitcoin, these millionaires have been increasing in number but the data shows that the increase in price is not the only driver.
Accumulation is the name of the game
The price of Bitcoin dropped significantly after the Russian invasion of Ukraine. This has seen a large number of Bitcoin millionaires lose their prestige. But since then, more investors have been added to the list of millionaires.
Santiment notes in a new report that the number of bitcoin addresses has been steadily increasing since the route between Russia and Ukraine began. Not only was the number of titles increasing, the number of whale titles was also increasing. These addresses with 10 to 100 thousand bitcoins on their existing or new balances were able to regain their millionaire status.
🦈🐳 number # bitcoin Addresses have been increasing since # Russo-Ukrainian war seem. Since then, 1,629 shark and whale titles have between 10 and 100,000 and are either new or have returned to that millionaire status (or higher). 📈https://t.co/08ytC3aMhW pic.twitter.com/9Ts70gdfHJ
– Santimentfeed April 27 2022
Usually, the obvious reason for the increase in the number of bitcoin millionaires is the rise in prices. This greatly increases the value of the tokens held. However, with the price of BTC now making any major recoveries lately, another reason for this is accumulation.
The chart from Santiment shows that these investors are accumulating BTC at an accelerated rate. This accumulation saw a sharp increase towards the end of March before tapering off, but the whales are once again gaining momentum as April approaches its end.
So instead of reclaiming their millionaire status by waiting for the price of BTC to rise, these whales were buying more coins. This also follows the latter Daily active header capture trend On the web. Network transaction volume is also in this regard.
Bitcoin turned bullish
Bitcoin lost its home at $40,000 earlier in the week. This caused an uproar among the bears as they tried to bring down the price of the asset. BTC continued to hold above the $36,000 support level, serving as the rebound of its recent recovery.
BTC trading in the mid $39,000s | Source: BTCUSD on TradingView.com
Currently, Bitcoin is trading above the 5-day moving average. An indicator that proves that investors now want to buy the digital asset at a higher price than they bought it a few days ago. This can often lead to a shift in investor sentiment but only in the short term.
BTC still needs to hold over $39,500 although this is still a critical spot for it. Failure to lock the price above this point could result in a retest of the $35,000 digital asset in the coming days before any sign of recovery is registered.
Featured image from Altcoin Buzz, chart from TradingView.com