In a packed report on digital assets, asset manager Fidelity theorizes that miner movements indicate that the Bitcoin cycle has much more wiggle room.
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Fidelity Digital Assets (the cryptocurrency arm of Fidelity Investments, which has USD 4.2 trillion in assets under management) shared his “two sats” on the future of the digital asset space. The main conclusions refer to the behavior of the miners and the adoption of the Bitcoin network (BTC).
In the report annual published last week, the group shared some thoughts about the world of BTC mining:
“As Bitcoin miners have the highest financial incentive to make the best guess as to the adoption and value of BTC (…) the current Bitcoin cycle is far from over and these miners are making long-term investments.”
The report states that the recovery of the hash rate in 2021 “was really amazing”, especially in the face of the
- Bitcoin ban by China, the second largest economy in the world. The hash rate rebound since the ban, thanks to BTC hash power being “more widely distributed throughout the world”, showed that miners are determined to make long-term profits.
Statements are in line with recent miner sales performance. Key on-chain metrics indicate that Bitcoin miners are in mass “accumulation” mode ” of BTC, since they show no desire to sell.
As for the orange coin hoarding by entire countries, Fidelity made some interesting predictions about more nation-states adopting BTC as legal tender:
“There is a high-stakes game theory at play here, whereby if Bitcoin adoption increases, countries that secure some Bitcoin today will be in a better competitive position than their peers. So we wouldn’t be surprised to see other sovereign nation-states buy Bitcoin in 2022 and perhaps even see a central bank make a purchase.”
Your comments come when a former MP from Tonga suggested that the country could adopt BTC by the end of 2022.
In essence, more regulation and better products will open up the cryptocurrency space, “bringing more of the hundreds of trillions of traditional assets into the digital asset ecosystem.” ales”. Combined with miner hodling, it could lengthen the cycle and push BTC price to new highs.
Keep reading:
- Bitcoin sells off after hitting resistance at the $44,000 level, prompting scrutiny from option traders
Institutional investment will push Bitcoin to $75,000, says SEBA CEO
Wait and See Approach: 3/4 of Bitcoin Supply Is No Longer Liquid MicroStrategy acquired 9,000 BTC last quarter; his stash is now worth $7 billion The risk of “bag holding”: When is hodling not a good idea? A Bank of America report highlights the virtues of “HOLDing” Report: Japan-Based Crypto Exchange DeCurret Plans to Sell to Hong Kong’s Amber Group
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