Bitcoin. Sean Gladwell Sean Gladwell
Kraken wrote in a blog Thursday that crypto miners who hold onto bitcoin are creating "supply surprises".
Supply shocks are driving bitcoin prices higher.
Kraken stated that the trend suggests bitcoin's bull market may be continuing.
Stockpiling bitcoin by crypto miners is creating a supply shock that will drive a surge in demand and set the stage for more gains for the world's most-loved cryptocurrency.
According to Kraken, long-term holders are responsible for the supply shocks.
Kraken stated that long-term bitcoin holders have not reacted to the September price drop or October surge. They just keep on accumulating.
Kraken stated that the indicator, the 0-hop supply, that tells miners if they are holding onto coins mined, has increased by about half since September. Now, even small miners are starting to hold which could further increase the short supply.
Kraken stated that the supply shock and increased demand "put BTC into a strong position for trending higher." Kraken noted that bitcoin is below the halfway mark between oversold territory and overbought territory. This "suggests that there's still plenty of room for BTC"
Fidelity and others have also suggested that Bitcoin could continue its rise past the $100,000 mark.
According to CoinMarketCap data, Bitcoin prices have risen more than 50% in the past month. Partly, the rise is due to the hype surrounding regulatory approval for the first ever bitcoin-linked ETF which was launched last week on the New York Stock Exchange.
Bitcoin is now down from last week's record high of $67,000. According to CoinMarketCap, it traded at 61,174.20 on Thursday morning, a 4% increase.