Crypto miners are accumulating bitcoin, causing a supply shock and positioning bitcoin as the world’s most popular cryptocurrency to see even greater increases in the near future. As reported by Kraken, the cryptocurrency exchange believes that long-term investors, crypto miners, and whales are the driving forces behind the so-called supply shocks in the market.
Long-term investors, on the other hand, haven’t responded to bitcoin’s price dip in September, or even its climb in October, according to the cryptocurrency exchange Kraken. Instead, they just continue to accumulate.
As for miners, an indicator known as the 0-hop supply, which determines whether or not they are holding onto coins they have mined, has increased by approximately 50% since September, according to Kraken, and now even small miners are beginning to hold, which could exacerbate the shortage even further, the company said.
The combination of the supply shock and increasing demand “placed BTC in a solid position to trend upward,” according to Kraken. In one indicator, bitcoin is trading below the midway point between oversold and overbought territory, “suggesting that there is still space for BTC to run,” according to the publication.
A number of other financial institutions, such as Fidelity, have predicted that Bitcoin’s rise would continue above the $100,000 threshold, if not higher. CoinMarketCap statistics shows that the price of bitcoin has increased by more than 50% in the previous month, making it the most expensive cryptocurrency ever.
Because of the excitement generated by traders over the approval of the first-ever bitcoin-linked ETF, which was launched on the New York Stock Exchange last week, bitcoin has seen a significant increase in value. Bitcoin has declined from its all-time high of roughly $67,000 reached last week to a current level of around $67,000. According to Coingecko, the stock was trading 4 percent higher at 61,174.20 at 11:58 a.m. ET on Thursday morning.
