Bitcoin rally on October was pretty much expected in the community. With a strong 50% growth, the term uptober turned out to be right on the money. A recent report by the crypto exchange Kraken now reveals why and how the gains were made.
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The Bitcoin Rally
October was that fresh breath of air after a long time spent down in the dumps. Bitcoin finally illustrated some significant bull runs and even reached an all-time high. With over 50% growth, BTC managed to reach a $1.1 trillion market cap. As of the last day of October, the price stands at $60,800 and a majority of analysts maintain a bullish outlook for it. All data provided by CoinMarketCap.
The Kraken team revealed in their studies that the primary cause for this surge is a supply shock. According to the research, large mining pools refusing to sell the mined coins for profit is primarily the reason for the price hike. Subsequently, the hodling has led to a supply shock in the market that has boosted the price to new heights.
The research has found recurring patterns for hodl waves, an indication of stagnant coin supplies in a specific time frame. In fact, giant miners such as Riot Blockchain (NASDAQ:RIOT), Marathon Digital (NASDAQ:MARA) and Hut 8 Mining (NASDAQ:HUT) seem to have been holding their BTC since September. Data according to a CoinDesk report.
Subsequently, with the rise in price, a growing interest in cryptocurrencies and higher number of transactions was also responsible for the Bitcoin rally.
Bitcoin was not the only one to skyrocket. A vast majority of altcoins had massive gains in October. Furthermore, Ethereum also reached an ATH on October. As part of a cohesive market, Bitcoin’s dominance causes altcoins to move pretty much in the same direction. Considering that, Ethereum’s rally was partially due to Bitcoin’s and partially caused by the upgrades in the system and approaching Ethereum 2.0.
All in all, October was just what the doctor ordered after a rough year for cryptocurrencies. Numerous altcoins reached new ATHs as Bitcoin continued on being an incredible asset throughout the month.
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