Kraken’s Shocktober Report Shows Major Whales And Miners Fueling BTC Surge

Table of Contents

• Details Of The Report
• Major Players Continue To HODL
• Two Unique Patterns

Cryptocurrency exchange Kraken has released its latest report that suggests mining operators and long-term BTC holders are continuing to amass their holdings, continuing to help BTC surge during the current month.

The cryptocurrency exchange’s intelligence branch published the report.

Details Of The Report

The intelligence report, designated as “Shocktober,” reveals several data indicators that point to the market heading towards a bullish phase in the coming few months. Major Bitcoin holders and miners continue to accumulate BTC, leading to a supply shock in the crypto market, which contributes to the short-term price rise that we have seen throughout the current month’s trading cycle.

Mining pools and smaller participants have also pocketed significant gains, with small miners prone to selling thanks to market fluctuations.

Major Players Continue To HODL

According to a metric called the 1-year revived supply, which is used to track the movement of BTC from long-term BTC holders, major players who have significant holdings of BTC are not taking advantage of the current surge in prices, as the measure dropped to its lowest level since August.

Another significant indicator known as the BTC Hodl Waves has indicated that early buyers of Bitcoins which have been inactive for more than six months have seen an increase of over 11% in their investments. Long-term Bitcoin holders had sold some of their holdings during the price drop that occurred in September.

Two Unique Patterns

According to the Shocktober report, there are two distinct patterns that have emerged. Big mining players such as Marathon, Riot, Argo, Bitfarms, and Hut8 have continued to accumulate BTC. The accumulation has continued even during unfavorable market conditions. This is backed up by the 0-hop supply that refers to the addresses that obtain mining subsidies from Coinbase transactions.

The 0-hop supply has seen an increase of nearly 50% since September, with large mining corporations that hold over 20.4K BTC unwilling to offer their holdings to the market any time soon, contributing to the supply shock mentioned earlier.

The 1-hop supply that tracks the market actions of small miners and contributors as part of a mining pool indicates that they have sold off some of their profits. However, if the trend were to reverse, we could see the market reach even higher prices than what was witnessed towards the end of the year.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.