Bitcoin Prepared For Further Supply Shocks As Ethereum Suddenly Soars

Bitcoin and cryptocurrency prices skyrocketed through October, with the combined crypto market adding $ 1 trillion since its lows in September.

Subscribe to Forbes’ CryptoAsset & Blockchain Advisor now and discover hot new NFT and crypto blockbusters ready for 1,000% profit

Bitcoin price hit a new all-time high earlier this month, topping $ 67,000 per bitcoin. Meanwhile, Ethereum, the second largest cryptocurrency after Bitcoin, also hit an all-time high this week, climbing to over $ 4,400 per ether.

Bitcoin’s rally, which added $ 20,000 to the price of just one bitcoin, was traced back to large Bitcoin holders (known as whales) adding to their stacks – with crypto analysts finding the supply shocks “only stronger.” became”.

Register now for the free CryptoCodex—A daily newsletter for those interested in crypto. We help you understand the world of Bitcoin and Crypto, every day of the week

MORE FROM FORBESCrypto Price Prediction: Ethereum Could Outperform Bitcoin, Soaring To Over $ 50,000from Billy Bambrough

Bitcoin price has increased its value by around 40% over the past month, as has Ethereum’s rally … [+] help increase combined crypto market capitalization.

Getty Images

“The supply shock through long-term [bitcoin] Last month’s owner has only gotten stronger this month, “said Pete Humiston, manager of the Kraken research arm of a crypto exchange. As newly created coins are hoarded, bitcoin prices have risen as demand outpaces supply .

The weekly average whale population has increased 0.25% since early October to hit a record $ 724.4 billion, Kraken found. Meanwhile, the number of these holders rose 1.6% to 16,156, the highest level since May. Humiston told Coindesk that “both large companies and smaller players who secure the network through mining pools seem to have Bitcoin in store”.

Humiston reported that only a small number of so-called miners – who use high-performance computers to secure the Bitcoin blockchain in exchange for freshly minted coins – are selling even though Bitcoin price has hit an all-time high.

“Larger players in the market have become more confident and prefer to accumulate more than take profits,” the report said. “With whale numbers and whale populations increasing, it is clear that whales are a driving force in this latest attempt and remain optimistic.”

KryptoCodex—A free, daily newsletter for those interested in crypto

MORE FROM FORBESCrypto Price Prediction: Bitcoin Forecast will hit $ 5 million if the price goes up by 2021from Billy Bambrough

Bitcoin price has gotten back into shape after a summer lull last month. In the meantime, … [+] Ethereum and other cryptocurrencies have also rallied.

Coin base

Kraken’s report is in line with recent research, which found that the vast majority of bitcoins are owned by a relatively small group. Last week, researchers said they found Bitcoin remained focused on a handful of holders and warned that it “leaves Bitcoin vulnerable to systemic risk.”

“Our results suggest that, despite the significant attention Bitcoin has received in recent years, the Bitcoin ecosystem is still dominated by large and concentrated players, be they large miners, Bitcoin holders or exchanges,” analysts of the National Bureau of Economic Research wrote.

Comments are closed.