Kraken’s Shocktober” Report –

Mining According to Kraken’s latest intelligence report titled “Shocktober,” operators and holders continue to accumulate Bitcoin. In the report, several key figures indicate an optimistic assessment for the coming months. In contrast, mining pool employees and small miners have taken profits, making them more vulnerable to selling due to market movements.

“Shocktober” report paints a bullish panorama

A new report issued from the intelligence division of the US exchange Kraken suggests that mining operators and long-term holders are actively contributing to this month's Bitcoin rally. The report, titled Shocktober, says mining companies and giant owners are causing a supply shock in the market that has fueled this month's short-term rally.

According to a metric called 1-year revived supply, which reflects the movements of long-term Bitcoin holders' coins, these investors are not taking any profits from this rally. The metric fell to 2,293.5 Bitcoin, its lowest level since August.

Also another metric, BTC Hodl Waves, which breaks down Bitcoin sales by holder type, found that early investors in “legacy coins” (Bitcoins with more than 6 months of no movement) increased by 10.9%. This implies that long-term investors did not sell their Bitcoins during the September sell-off.

Big miners accumulate BTC

The mining situation is also relevant for Kraken. According to their research, two different patterns emerge. Big miners like Riot, Marathon, Bitfarms, Argo and Hut8 have continued to stack Bitcoin even during adverse market moments. This is evidenced by another metric, 0-hop supply, which refers to the addresses that receive the mining subsidy directly from Coinbase transactions.

This metric has increased by almost 50% since September, with major mining companies, now primarily based in America, holding more than 20,000 Bitcoin that will not be sold on the market any time soon. This contributes to the supply shock mentioned. However, small market participants have taken profits.

The 1-Hop Supply, an indicator that attempts to track the movements of small miners and contributors who are paid as part of a mining pool, shows that these miners have dumped some of their profits. However, if this trend were to reverse, it could result in an even larger supply shock that would push the market even higher Prices towards the end of this year.

What do you think of Kraken’s “Shocktober” report? Tell us in the comments section below.

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