Kraken recently released its Shocktober report, revealing major information about Bitcoin. The report states that most BTC miners still maintain their original holdings even under adverse conditions.
The one-year received supply of Bitcoin shows a granular view of long-term hold supply. The numbers show the amount of coins that become active after being dormant throughout the period. From the 2020 Q4 to the first half of 2021, the number of circulated coins has surged.
In September 2021 alone, Bitcoin’s one-year revived supply reached 2293 dollars. On the other hand, the crypto hit its three-year low of 1577.82 dollars this year. The report by one of the crypto exchanges in Nigeria – Kraken shows that Bitcoin’s circulating supply did not budge for a long time.
It directly translates that long-term BTC holders did not sell crypto even during September’s weakness or October’s growth. The report also shows a metric known as 0-hop supply that assesses the behavior of mining pools.
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The tool shows that the miners possess around 20,400 coins, which they do not plan to sell anytime soon. The metric also monitors the addresses that got funds from Coinbase. This is the initial transaction of every Bitcoin block, which was paid to mining pools for the PoW (proof-of-work) activity. 0-hop supply notes that the coins have not shifted even once from the addresses.
These hoardings create a supply shock, resulting in a short-term price boost. There could be another supply shock if the miners maintain their profits. Besides the surge of transactions in October, crypto also witnessed an increase in daily transactions. The daily transactions hit a five-month high of 284936 on October 22.
The report also released Bitcoin’s velocity, which measures the network demand with respect to the price increase. The one-year active supply velocity of Bitcoin rebounded +4.9% to 10.92x on October 15.
Metrics like HODL waves and one-year revived supply suggest a trend of more cryptocurrencies lying dormant for a long time. BTC whales, users owning over 100 or more Bitcoin, are leading the long-term holders and increased network demand. As a result, BTC’s whale holdings also surged to their all-time high of 11.9 million in October 2021.
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The report indicates the long-term trust holders have in Bitcoin. With the crypto surging in market value, the trust in the crypto will keep rising. Click here to know more about Bitcoin betting.
