Meltem Dimirors from CoinShares Says Bitcoin’s Recent Strength is Driven by These Two Catalysts
The chief strategy officer at digital asset manager CoinShares says two factors are driving Bitcoin’s (BTC) recent rise.
In a new interview with Bloomberg Television, Meltem Demirörs said that BTC’s rise since November was mainly driven by two catalysts that few analysts had predicted.
According to Demirors, the first factor is the inflow of funds into public BTC miners, whose fundamental strength is increasing.
“First, there has been a massive influx of capital into public Bitcoin miners, and Bitcoin miners are no longer just mining Bitcoin. We have friends like Core Weave, Hut 8, and others who are getting into big language models for AI (artificial intelligence).
They run a bunch of GPUs (graphics processing units), they build data centers that offer a wide range of high-performance computing services, and at the end of the day, Bitcoin isn’t the only ecosystem that requires mining. It requires chips that require data centers. So I think capital is becoming broadly available because of this AI narrative and the rise in Bitcoin.”
Another factor driving Bitcoin, according to Demirörs, is the unexpected rise of BTC ranks, which are taking an increasing share of the largest blockchain’s activities and generating large amounts of revenue for miners.
“And the second big thing is we are hitting all-time highs in terms of hash rate. There are many activities besides Bitcoin. There are BTC tokens similar to Ethereum ERC-20 tokens. We have Bitcoin NFTs called ordinals. I’m talking a lot of slang here but there is tons of activity on Bitcoin. We are seeing an all-time high hashrate in Bitcoin, a huge number of calculations for it, and fees for the first time in the history of the Bitcoin network; transaction fees exceed the block reward for Bitcoin miners. “It is extremely promising for future revenue streams.”
BTC is valued at $42,724 at the time of this writing, up almost 60% since trading around $27,000 in early October 2023.
#Meltem #Dimirors #CoinShares #Bitcoins #Strength #Driven #Catalysts