Cryptocurrency exchange Kraken reveals a factor that may be responsible for powering Bitcoin’s (BTC) rally throughout October. A supply shock trend that shows no signs of slowing could be one of the drivers behind the Bitcoin rally this month, according to the exchange’s report.
Kraken: Bitcoin prepares for supply shock
According to the report of the exchange, Bitcoin (BTC) may experience a supply shock due to the accumulation of its long-term investors. The report mentioned:
BTC is preparing for a supply shock thanks to greater accumulation by long-term holders. This accumulation could be an impetus for BTC’s recent move past $60,000. The latest on-chain data shows this supply shock trend is growing.
Kraken said it tracks the HODL waves metric, which shows the percentage of BTC supply that has been dormant over a period of time. According to the report, long-term holders continue to accumulate Bitcoin despite its strength this month.
Since May 24, young cryptocurrencies have been maturing into the long-term holdings category at a rapid rate. In about five months, older coins rose 10.9 percent to 51.6 percent, while younger coins fell -11.8 percentage points to 25 percent, the lowest figure since November 2018 when BTC was worth roughly $5,700. It fell to .49. Last month, younger coins fell another -1.57 percentage points, while older coins rose +1.48 percentage points. This tells us that the long-term holders with the most coins continue to accumulate supply.
Kraken continues:
As such, the immediate marketable supply continues to decline – hence we observe that BTC could suffer a supply shock.
Miner accumulation could cause supply shock
cryptocoin.com According to the Kraken report, which we quoted as Bitcoin (BTC) miners, also partially responsible for the supply shock. In the details of the report, the following was said about the miner’s savings:
The largest publicly traded BTC mining companies in North America, including Riot, Marathon, Bitfarms, Hut8, Greenidge, Argo and HIVE, have publicly announced that they are holding 20,459 (BTC – $1.25 billion), including 4,812 (BTC). Earlier this year, Marathon savings he bought on the secondary market was $293 million. Needless to say, mining pools are aligned with long-term holders in bullish sentiments, further adding to BTC’s latest supply shock.
The cryptocurrency exchange also says that a consensus has developed among market watchers that long-term Bitcoin holders expect the leading cryptocurrency to rise as 2022 approaches:
Despite BTC falling more than -15% in September and rising by October, long-term holders continued to accumulate. This leads market watchers to believe that long-term investors are seeing more upside towards a new year.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.