Kraken Australia CEO Jonathan Miller described yesterday’s Bitcoin crash as a natural correction after BTC was “dragged” by overheated Ether.Ethereum) And the non-fungible token (NFT) market.
In its August report, Kraken pointed out that at the beginning of this month, the supply of ETH on centralized exchanges fell to a three-year low of 12.8%, and concluded that “supply shocks are more likely to cause ETH to rise”.
Miller pointed out that Kraken saw “a massive increase in transaction activity” leading to the highly anticipated London upgrade of Ethereum, adding that the demand for Ethereum has continued since then.
In addition to the hype surrounding the Ethereum upgrade and the launch of EIP-1559, Miller also attributed the recent cryptocurrency rally to the frenzy surrounding NFTs.
Kraken pointed out in its report that according to the weekly moving average, the NFT platform experienced explosive growth in August. OpenSea’s daily users increased by 289% and transaction volume increased by 900%.
“Bitcoin’s combination is […] Being dragged down by Ethereum a bit, Ethereum has become very hot due to all the activities on the NFT, and I think some natural shrinkage will happen,” he said, adding:
“When you start to see Sootheby auctions and NFT numbers-these are high levels. When we reach historical highs, we always see corrections. I think this is a natural part of the cycle.”
“Bitcoin has risen sharply again from its previous decline. It does this, we know,” he added.
Miller also noticed the buzzing around El Salvador’s Bitcoin Law Take effect in the “exciting factors” that contributed to Bitcoin’s recent rise, and acknowledge that some investors may plan to sell in the El Salvador news:
“The timing of the El Salvador incident, I think you can’t ignore it […] In terms of the Bitcoin adoption story, this is a critical turning point. “
“I saw two photos on Twitter, people used lightning to buy McDonald’s and Starbucks in El Salvador,” he added.