Crypto miners are stockpiling Bitcoin, creating a supply shock and poaching the world’s most popular cryptocurrency for higher earnings. In a report from Kraken, the crypto exchange said that long-term BTC holders, along with crypto miners and whales, could create a supply shock. Details are here.
Kraken claims that long-term BTC holders did not react to Bitcoin’s September price drop or even October’s surge. Instead, these investors continue to accumulate.
As for miners, Kraken said an indicator called the 0-hop supply, which determines whether they hold the coins they mined, has increased by about 50% since September, and now even small miners are starting to hold coins rather than sell them, which could worsen the shortage of supply. .
Kraken added that the supply shock and increased demand “put BTC in a strong position for the higher trend.” He also drew attention to a metric that shows that Bitcoin remains below the midpoint between the oversold and overbought zone, and said, “It shows that there is still room for the BTC run.”
Bitcoin experienced an epic price rally last month, gaining more than 50%, according to data from CoinMarketCap. The increase was in part thanks to the first Bitcoin ETF launched on the New York Stock Exchange last week. Bitcoin slumped from its all-time high of around $67,000, which it recorded last week. At the time of writing, the leading cryptocurrency is trading at $61,1081, according to CoinMarketCap.
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