CoinShares’ Meltem Dimirors says Bitcoin’s recent strength is driven by these two catalysts
The chief strategy officer of digital asset manager CoinShares says two factors are fueling Bitcoin's (BTC) recent rallies.
In a new interview with Bloomberg Television, Meltem Demirors says BTC's rise since November is primarily driven by two catalysts that few analysts foresaw.
According to Demirors, the first factor is the inflow of funds into listed BTC miners, which are enjoying increasing fundamental strength.
“First, there has been a huge influx of capital into publicly traded Bitcoin miners, and Bitcoin miners are no longer solely mining Bitcoin. We have people like Core Weave, Hut 8 and others working on large language models for AI (artificial intelligence).
They run a range of GPUs (graphics processing units), they build data centers that serve a wide range of high-performance computing, and ultimately Bitcoin is not the only ecosystem that requires mining chips, that requires data centers. So I think there's just been a lot of availability of capital because of this AI narrative and because of the rise of Bitcoin.”
The other factor driving Bitcoin, according to the Demirors, is the unexpected rise in BTC atomic numbers, which are taking up a growing share of the top blockchain's activity and bringing big revenue to miners.
“And then comes the second big thing: we are reaching all-time highs in terms of hash rate. There is a lot of activity surrounding Bitcoin. There are BTC tokens, similar to the Ethereum ERC-20 tokens. We have Bitcoin NFTs called ordinals. I'm using a lot of jargon here, but there has been a lot of activity surrounding Bitcoin. “So we’re seeing a record-breaking hash rate in Bitcoin, a lot of computing power being spent on it, and fees exceeding Bitcoin miners’ block reward for the first time in the history of the Bitcoin network is extremely promising in terms of future revenue streams.”
At the time of writing, BTC is worth $42,724, up nearly 60% since trading at around $27,000 in early October 2023.
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