Bitcoin cycle is far from over and miners are in it for the long haul: Fidelity report

Fidelity Digital Assets — Fidelity Investments’ crypto wing, which manages $4.2 trillion in assets, shared its “two sats,” on the future and prospects of digital assets. The main takeaways focused on miners’ behavior as well as Bitcoin (BTC), network adoption.

The group released its annual report last week and shared some insights into BTC mining.

“Bitcoin miners have the greatest financial incentive to predict the value and adoption of BTC (…), so the current cycle is not over. These miners are investing for the long-term.”

According to the report, the 2021 recovery in hash rate “was truly amazing” especially when you consider that China, the second-largest economy in the world, had banned Bitcoin in 2021. BTC’s increased hash power, which is “more widely distributed throughout the globe,” has led to a rebound in the hash rate that has occurred since the ban. This shows miners are focused on long-term profit.

These statements are consistent with the recent selling performance of miners. The key on-chain metrics indicate that Bitcoin miners are in “massive accumulation” mode. Miners have no desire to sell.

Related: Fidelity executive says Bitcoin is technically oversold. Making $40K a pivotal support’

Fidelity had some interesting predictions about orange-pilling whole countries. They predicted that more nation-states would accept BTC as legal currency.

“There is a very high-stakes strategy at work here. If Bitcoin adoption increases, countries that have secured some Bitcoin today will be more competitive than their peers. It wouldn’t surprise us if other sovereign nations acquire bitcoin by 2022, or a central bank makes an acquisition.

These comments were made by Tonga’s former MP, who suggested that the country might adopt BTC in 2022.

The essence of this is that more regulation and better products will open the crypto space and “bring a greater proportion of the hundreds of trillions of traditional assets into digital asset ecosystem,” which, when combined with the hodling of miners, could extend the cycle and propel BTC to new heights.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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