In a recent chat with Bloomberg Television, Meltem Demirors, the brains behind digital asset manager CoinShares, spilled the beans on what’s really driving Bitcoin’s impressive climb since November. Forget the usual suspects; according to Demirors, it’s the unexpected players that are stealing the spotlight.
Bitcoin Miners Diversifying and Riding the AI Wave
Demirors points to the first catalyst – a cash flood into publicly listed Bitcoin miners. But it’s not just about mining Bitcoin anymore. Companies like Core Weave and Hut 8 are making a splash by venturing into the world of artificial intelligence with large language models. Picture this: graphic processing units (GPUs) working overtime, data centers buzzing with activity, and a diverse range of high-performance computing services. According to Demirors, it’s not just Bitcoin that’s reaping the benefits; the entire AI narrative is playing a role in this financial bonanza.
BTC Ordinals: The Unlikely Heroes
The second force propelling Bitcoin’s ascent, as per Demirors, is the unexpected surge in BTC ordinals. These digital entities are carving out a significant space in the top blockchain’s activities, proving to be a lucrative source of income for miners. Demirors dives into the tech jargon, highlighting the growing activity around Bitcoin, including BTC tokens akin to Ethereum’s ERC-20 tokens and the emergence of Bitcoin NFTs, known as ordinals.
Demirors emphasizes the all-time high hash rate on Bitcoin, signaling a surge in computing activity. What’s particularly promising? Transaction fees on the Bitcoin network have hit historic highs, surpassing the block reward for miners for the first time. This shift, she believes, holds immense potential for future revenue streams.
As of the latest update, Bitcoin is standing strong at $42,724, marking a staggering 60% surge since its humble $27,000 levels in early October 2023. The takeaway? Bitcoin’s recent rally is far from conventional, with unexpected players and narratives steering the ship.
