Kraken Australia CEO Jonathan Miller described yesterday\u2019s Bitcoin crash as a natural correction after BTC was \u201cdragged up\u201d by the overheated Ether (ETH) and nonfungible token (NFT) markets.<\/p>\n
In its August report, Kraken notes that the supply of Ether on centralized exchanges fell to a three-year low of 12.8% at the start of the month, concluding \u201cthe likelihood of supply shock capitulating ETH higher is greater.\u201d <\/p>\n
Miller noted that Kraken saw \u201ca massive run-up of trading activity\u201d leading into Ethereum\u2019s highly anticipated London upgrade, adding that demand for Ether has sustained since.<\/p>\n
In addition to the hype surrounding Ethereum upgrades and EIP-1559 going live, Miller attributes the recent crypto rallies to the mania surrounding NFTs.<\/p>\n
In its report, Kraken noted that the NFT platform saw an explosion of growth during August, with OpenSea\u2019s daily users gaining 289% and trade volume rising 900%, according to a weekly moving average. <\/p>\n
\u201cThe combination of Bitcoin being […] dragged up a little bit by Ethereum, Ethereum getting super hot because of all the activity on NFTs, I think there\u2019s a bit of a natural curtailment happening,\u201d he said, adding:<\/p>\n
\u201cWhen you\u2019re starting to see Sootheby\u2019s auctions and the numbers going around for NFTs \u2014 these are high levels. We always see corrections when we get to all-time highs. I think it’s a natural part of the cycle.\u201d<\/p><\/blockquote>\n
“Bitcoin’s had a big run-up again from a previous dip. It does this, we know that,\u201d he added.<\/p>\n