Meltem Demirörs, chief strategy officer of CoinShares, said: Bitcoin He believes that the recent rallies in price are expected to be driven by two key factors.
Meltem DemirorsIn a new interview with Bloomberg, BTC’s rally since November was driven by two catalysts that few analysts had predicted.
According to Demirörs, the first factor was the inflow of funds into public Bitcoin miners and the increase in the fundamental power of these miners.
First, there has been a massive influx of capital into publicly traded Bitcoin miners, and Bitcoin miners are no longer just mining Bitcoin. There are those that fall into large language models for AI (artificial intelligence), such as Core Weave, Hut 8 and others.
NEWS CONTINUES BELOWLots of GPUs (graphics processing units) active, they’re building data centers that serve a wide variety of high-performance computing, and at the end of the day, Bitcoin isn’t the only ecosystem that requires mining, that requires chips, that requires data centers. So, I think there’s been a broad availability of capital because of this AI narrative and the rise in Bitcoin.
Another factor driving Bitcoin, according to Demirörs, was the unexpected rise of BTC ordinates, which are taking an increasing share of the top blockchain’s activities and generating large amounts of revenue for miners.
The second big thing is that we’re hitting all-time highs in terms of hash rate. There is a lot of activity on Bitcoin. There are BTC tokens similar to Ethereum ERC-20 tokens.
We have Bitcoin NFTs called sequentials. I’m using a lot of jargon here, but there is a lot of activity on Bitcoin. So, we are seeing an all-time high hash rate on Bitcoin, there is a lot of computation going on, and for the first time in the history of the Bitcoin network, transaction fees are exceeding the block reward for Bitcoin miners, which is extremely promising in terms of future revenue streams.