Mining holders and operators keep accumulating Bitcoin according to the Kraken intelligence report, “Shocktober”. Several metrics in the report suggest a bullish outlook for the coming months. However, small miners and contributors to mining pools have made profits, which are more likely to be sold due to market movements.

‘Shocktober’ Report Paints a Bullish Panorama

A new report issued by the intelligence division of the U.S.-based exchange Kraken suggests that mining operators and long-time holders are actively contributing to bitcoin’s rally this month. Shocktober is a report that states that long-term holders and mining companies are creating a supply shock that has fuelled the bitcoin rally this month.

According to the 1-year revived stock, which measures the movement of bitcoins from long-term holders, these investors aren’t taking any profits from the rally. The metric fell to 2,293.5 bitcoin, the lowest level since August.

Also, another metric, BTC Hodl Waves, which divides bitcoin sales by type of holder, found out that early investors of “old coins” (bitcoin with more than 6 months of no movement) rose by 10.9%. This means that investors who have been holding bitcoins for a long time didn’t sell them during September’s market crash.

Big Miners Accumulating BTC

The mining situation is also relevant to Kraken. Their investigations revealed two distinct patterns. Riot, Marathon and Bitfarms have been known to continue stacking bitcoin in adverse market conditions. Another metric that shows this is the 0-hop supply. This refers to addresses that receive the mining subsidy directly through coinbase transactions.

This metric has risen almost 50% since September, with the big mining firms, now located mostly in America, holding more than 20.4K bitcoin that are unlikely to be sold into the market anytime soon. This is what contributes to the supply shock. However, profits have been made by small players in the market.

The 1-hop supply is an indicator that tracks the movements of small miners as well as contributors to a mining pool. It shows that these miners have unloaded some profits. But, if this trend suffers a reversal, it could cause an even bigger supply shock that would lead the market to even higher prices towards the end of this year.

What do you think about Kraken’s “Shocktober” report? Please leave your comments below.

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