Jonathan Miller, Chief Executive Officer at Kraken Australia, has appeared in public attempting to explain what led to a recent Bitcoin (BTC) price crash on September 7.
Miller has described the recent Bitcoin crash as natural and healthy, with the crash leaving Bitcoin (BTC) dropping from levels above $52,000 to below $43,000 levels, asserting:
“We always see corrections when we get to all-time highs. I think it’s a natural part of the cycle.”
The top executive has also suggested that the BTC price market crash may have resulted from overheated Ether (ETH) and non-fungible token (NFT) markets.
Concurrently, Jonathan Miller also released Kraken’s monthly summary, with the report noting that the supply of Ether on centralized exchanges fell to a three-year low of 12.8% at the start of the month in its August report, concluding:
“The likelihood of supply shock capitulating ETH higher is greater.”
While commenting about the report, Miller noted that Kraken intensified “a massive run-up of trading activity” amid highly anticipated London upgrade, adding that demand for Ether has remained constant throughout the month.
Additionally, the top executive also outlined the continued hype surrounding Ethereum upgrades, including EIP-1559 that went live recently, asserting that some of these factors have contributed to the run-up of trading activities, including NFTs mania rallies.
In its report, Kraken confirmed that the NFT platform intensified the unprecedented growth of NFTs during the past month, with OpenSea’s daily users gaining 289% and its trading volume soaring 900%, according to a weekly moving average.
Miller argues that some of those trading activities on Ethereum mainnet are among few factors that led to Bitcoin’s latest price market crash, asserting:
“The 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’s a bit of a natural curtailment happening.”
“When you’re starting to see Sotheby’s auctions and the numbers going around for NFTs — 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.”
In the same context, Miller insisted that Bitcoin had the chance to run up for new all-time high on several occasions before retesting correction aftermath, adding:
“Bitcoin’s had a big run-up again from a previous dip. It does this, we know that.”
Before summarizing, Miller outlined a fresh point surrounding El Salvador’s Bitcoin law that took effect the same day as a leading factor. He acknowledged that some investors might have planned to pump the price to sell the Salvadoran news:
“The timing of the El Salvador thing, I don’t think you could ignore it […] This is a pivotal turning point in terms of the adoption story for Bitcoin.”
Miller supported his point, adding:
“I saw photos of two on Twitter of people buying McDonald’s and Starbucks in El Salvador with Lightning.”