Key Insights:
- 344,620 new Bitcoin wallets were created in 24 hours, among the highest this year.
- New whales are buying BTC at a realized price of $91.9K, 185% above long-term holders.
- Binance’s BTC reserves fell below 530K, the lowest level recorded in over a year.
Bitcoin surpassed $103K as user activity increased with over 344,000 new wallets opened in one day. Meanwhile, new whales were bought in at higher prices, and Binance reserves plummeted, which indicates that both retail and institutional confidence in Bitcoin is still increasing.
Bitcoin Surges Beyond $103K as New Wallets Soar
The price of Bitcoin hit $103,800 on May 8, 2025, which was the highest price since January. Meanwhile, 344,620 new wallets were opened on the network in one day. This was one of the biggest wallet creation sprees of the year and a sign of increasing retail interest.
According to Santiment data, this burst of wallet growth occurred during a sharp upward price move. That day, Bitcoin opened at $102,815, went as high as $103,239, and closed near its daily high.
The sudden increase in wallet activity implies that new participants rushed in when the price momentum accelerated.
Mass influxes of new wallets usually mean a spike in retail interest or fear of missing out (FOMO). Although many see this as a bullish signal, such spikes can also be short-term market tops if they are crowd-driven rather than fundamental.
However, the increase in new wallets came after a number of weeks of steady price recovery, indicating that momentum was already in place.
Moreover, on-chain data from CryptoQuant reveals a clear differentiation between the newer and older Bitcoin whales. By early May 2025, the realized price for new whale addresses was $91,900. On the other hand, older whales holding Bitcoin for longer periods had an average realized price of $32,200.
This implies that newer whales are paying 185% more for Bitcoin than long-term holders. This spread was only 62% in late 2022, during which more cautious accumulation occurred in that market low.
The current gap implies that new buyers are more inclined to pile up Bitcoin at high prices even though the asset is near all-time highs.
The last time the spread between new and old whale cost basis exploded aggressively was in April 2021 when Bitcoin traded around $63,000. The spread at that time peaked at 437%.
Although the gap today is not as extreme, the increasing trend indicates that new capital is coming into the market even with the high price levels.
Funding Rates Remain Constant as Shorts Continue to Build
As prices increased, Bitcoin’s funding rates remained relatively stable. According to data from Bitcoin Magazine Pro, the 24-hour average funding rate is barely above zero. This implies that traders in long positions are not paying big premiums, which indicates neutral sentiment by leveraged traders.
Interestingly, the chart shows several periods of negative funding rates (in red) even as Bitcoin has been trending upwards. This trend of short sellers controlling funding during a bull market has frequently been seen as solid support areas in previous cycles.
Binance Reserves Plunge as Price Rises
One of the significant changes has been from centralized exchanges. According to Glassnode data, Binance’s Bitcoin reserves have sharply decreased in the past few weeks.
Reserves fell below 530,000 BTC from over 580,000 BTC in early April to early May. This is the lowest level for more than a year.
Exchange reserves are sometimes indicative of sell-side liquidity. When reserves decline, it could be an indication that more users are taking out Bitcoin for long-term storage or off-exchange use.
This limits the BTC that is available for trading, which can relieve selling pressure and sustain higher prices.
Public commentary has been bullish at the same time. A message from Binance founder “CZ” mentioned long-term targets of $500,000 to $1 million. Although such projections are speculative, they tend to enhance market sentiment particularly when backed by data indicating declining reserves and new wallet growth.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
