San Francisco-based cryptocurrency exchange Kraken published a report titled “Shocktober.” Which provided some insights into Bitcoin’s movements and whale behavior.
«There has been little profit taking by long-term Bitcoin holders. By the way, this means that the largest market participants have become more and more confident, preferring to accumulate more».
Mainly, Kraken’s “Shocktober” report reveals data indicating that the market expects a positive result in the coming months.
On the other hand, mining pool participants and small miners have pocketed profits. The latter being more likely to sell due to market fluctuations.
«As users and miners grow in understanding of Bitcoin, the natural path is HODL».
Kraken’s ‘Shocktober’ Report on Bitcoin Accumulation
In Kraken’s Shocktober report, several metrics hint at a bullish view on Bitcoin for the next few months.
Specifically, a metric called 1-Year Revived Offer indicates that these investors are not taking advantage of the current increase.
This shows that long-term holders did not sell during September weakness or October strength.
- The metric presents the volume of coins that are activated after being inactive for a specified period of time.
- A modest number of coins were circulated again from the fourth quarter of 2020 to the first half of 2021.
- In September 2021, the 1-year supply of BTC reached $ 2,293. And a 3-year low of $ 1,577.82 was reached in early 2021.
Another indicator, the Bitcoin HODL Waves metric reflects the percentage of the circulating supply of BTC that has not moved for a specific time.
Patterns in the Shocktober Findings
Based on Kraken’s findings, two unique patterns have been seen, with major Bitcoin miners like Riot, Marathon, Bitfarms, Argo, and Hut8 having continued to accumulate Bitcoin even in adverse market times.
This is evidenced by another metric, the 0 hop bid, which refers to the addresses that get the mining subsidy directly from Coinbase transactions. The metric assumes that coins that have not been moved at least once have not been sold or paid to miners.
For their part, smaller miners have dumped profits, according to the 1-hop supply metric that tracks their movements. If they choose to hold their profits in the future, this could trigger a new supply shock, leading to much higher prices later in the year.
In closing, according to the Kraken report: «Validating the uptrend and highlighting the strong demand for BTC, the enthusiasm in the market is evident through various metrics and indicators».
What’s more: “Renewed demand for BTC is becoming clearer when looking at active addresses, new addresses, transaction count, speed, and other metrics».
What do you think of Kraken’s “Shocktober” report? Let us know in the comment box.
I retire with this phrase from Michael Saylor: «Bitcoin doesn’t have to be perfect, just good enough to last forever».