The team at virtual asset firm Kraken notes that after a “predictably disappointing” September in the crypto asset markets, “history was made in October when BTC hit new all-time highs. “
Kraken wrote in a detailed report that, as announced last month, the knowledge “indicates that a surprise source (induced through long-term headlines) has contributed to BTC reaching record levels:
In Kraken Intelligence’s most recent Crypto On-Chain Digest, SHOCKTOBER, the team examines “the effect on the impact of the BTC source, how whales and long-term holders are leading the charge, and why chain metrics recommend that the bull run still has a significant advantage. “
HodLers’ paradise
As Kraken noted:
“BTC’s HODL waves, an indicator that provides insight into holding and spending behaviors, paints a picture of a market that is not yet in a position to sell. Long-term holders have not reacted to September’s weakness or October’s strength, and instead continue to accumulate. »
They added that since the end of May 2021, the “young pieces” (those that move within six months) are “maturing because they are maintained in the long term. “noted since November 2018, when BTC was trading at around $5,700,” Kraken’s update revealed.
Miners with diamond hands
The report also noted that it is unexpected that minors also “appear to resist in the long run. “As discussed in the Kraken update, the 0-hop be offer is an undeniable measure to “determine the habit of the mining pool, as it tells us whether the validators of the Bitcoin network have the coins they have mined. “
It is assumed that coins “that moved (or ‘jumped’ at least once were sold or paid to miners”), the report explains.
As in the report:
“The source of 0-hop has been highest by nearly 50% since September, and North American primary groups have publicly reported holdings of more than $20. 4 billion ($1. 3 billion). On the other hand, the 1-hop offer (usually allocated to small miners operating as a group) shows that small miners have made a profit. However, now that this trend is being reversed, this surprise source may be exacerbated as those players also prevent the sale. “
Bulls in parade
He continued:
“A source of impact, driven by long-term headlines, whales, miners and increased demand from the network, puts BTC in a solid position to maintain an uptrend. But we want to turn to quantitative signs to get a broader concept of their position. in the existing confinement. “;
The report also discussed that the SOPR (Spent Product Profit Ratio) “attempts to give us an answer through more or less evaluating whether market participants are promoting at a profit or at a loss. “
Given a recent rebound and the historic movements of September 2020, “it would seem to be a strong set at the point of around $42,000,” the report noted, adding that it “also confirms that the recent decline was a healthy pullback, and not a full-blown reversal.
The Z-Score MVRV (Market-Value-To-Realized-Value) “estimates whether BTC is in oversold or overbought territory,” the report noted, adding that “lately it is at the midpoint between those two thresholds, suggesting that there is still room for BTC to work.
For the full report, click here.