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- Bitcoin miners hodling creates supply shock which consequently leads to the price increase.
- Mining companies with 0’hop addresses have been believed to be buying and continue to hodl
- Mining Companies that hodl bitcoin see increase in the valuations.
In the recent weeks, the crypto enthusiasts have seen extreme sentiments of bullishness in the market apart from rallies of meme currencies, The crypto king, Bitcoin also discovered a new all time high of more than $67,000. The issue of new derivatives like Bitcoin ETFs around the market, were concluded to be the reason behind the rally.
Apart from such initiatives around the market, it was also observed the extent of miners affecting the price movement. According to a report from the exchange kraken, it was observed that Bitcoin miners that were hodling the tokens for more than a month, resulted in a supply shock thereby causing the price of bitcoin to go up.
However, not all miner hodlers have held onto their Bitcoin, It was observed that most of the individual miners that had 1-hop addresses sold their tokens in market strength, even though they did hodl the token in earlier months. The supply of such are currently at a record low of 100,000 from 2.7mn tokens.
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On the parallel sphere, mining companies and companies that have pooled holding of the token, with 0- hop addresses have been reported to buy and hodl more. Their supply has witnessed an increment of 42% and has increased from $74bn to more than $104bn.
Lately, too many big mining firms have also publicly issued a statement that they’re currently hodling over 20,450 BTC worth more than $1.2bn.
Mining firms which have been adding their Bitcoins to their balance sheets are perceived to be interested in the long term perspective and also are pitching in for the supply shocks that would increase the price further. It is also expected that the bitcoin market will face an 8th difficulty adjustment in a span of three months, such a scenario has been witnessed for the first time in more than 3 years.
The increment in hash rate and mining rate has also been observed thereby decreasing revenue per hash in a perfect equilibrium. However the rising prices have made sure that the revenue per hash does not drop too much and is currently around similar levels observed in april-may.
The hodling behaviour of mining companies and listing them as an asset, in regards to the bull market has also helped them in increasing their valuation. One such example would be Rhodium Enterprises, where the company is planning on an IPO and intends to raise more than $100million.
If the greens continue, it would actually be favourable to Rhodium Enterprises and other mining companies.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
