Bitcoin miners have recently caused a “supply shock” in the digital currency market. According to the Shocktober report from the Kraken exchange, many miners are hoarding bitcoins rather than selling it on the market.
The accumulation of bitcoin by miners has been reflected in the price over the past month; with bitcoin (BTC) surpassing US$ 66,000 and with the cumulative monthly appreciation of nearly 40%, miners have preferred a long-term strategy.
Not even the devaluation of more than 7% in September 2021 changed this long-term trend among miners. According to the report, hodler’s strategy was also maintained during the last new all-time high hit by bitcoin at the end of October 2021.
In recent months, the accumulation of bitcoins by miners may have been further reflected in the sustained appreciation wave of the cryptoasset, which continues to be quoted above US$ 62,000 on Wednesday (3).
Kraken’s Shocktober report used the 0-hop supply index to analyze the behavior of large bitcoin miners in the market. In September, the rate of large miners hoarding BTC increased by 50%.
Kraken’s report also cites that small miners took advantage of bitcoin’s latest major valuation to liquidate their positions. However, the trend is to increase the “supply shock” in the market, with small miners opting to accumulate after making a profit from bitcoin’s latest big valuation.
“The 1-hop supply shows that small miners have made some profits. However, now that this trend seems to be reversing, this supply shock may be exacerbated, as these participants also stop selling”.