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

Fidelity
Digital
Assets

the
crypto
wing
of
Fidelity
Investments,
which
has
$4.2
trillion
assets
under
management,
shared
their
“two
sats”
on
the
future
of
the
digital
assets
space.
The
key
takeaways
touched
upon
miners’
behavior
and
Bitcoin
(BTC)
network
adoption. 

In
the
annual
report

released

last
week,
the
group
shared
some
insights
into
the
world
of
BTC
mining:


“As
Bitcoin
miners
have
the
most
financial
incentive
tho
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
investments
for
the
long
haul.”

The
report
stated
that
the
recovery
in
the
hash
rate
in
2021
“was
truly
astounding,”
particularly
when
considering
that
the
world’s
second-largest
economy, China,
banned
Bitcoin
in
2021.

The
rebound
in
hash
rate
since
the
ban
thanks
to
BTC’s
hash
power
being
“more
widely
distributed
around
the
world,”
showed
miners
are
set
on
long-term
profits.

The
statements
aligned
with
miners’
recent
selling
performance.
Key
on-chain
metric
indicate
Bitcoin
miners
are
in
massive
BTC
accumulation
mode,

as
miners
show
no
desire
to
sell
.



Related:




Fidelity
exec
says
Bitcoin
is
‘technically
oversold,’
making
$40K
a
‘pivotal
support’

When
it
came
to
orange-pilling
entire
countries,
Fidelity
made
some
interesting
predictions
into
more
nation-states
accepting
BTC
as
legal
tender:


“There
i​​s
very
high-stakes
game
theory
at
play
here,
whereby
if
Bitcoin
adoption
increases,
the
countries
that
secure
some
Bitcoin
today
will
be
better
off
competitively
than
their
peers.
We,
therefore,
wouldn’t
be
surprised
to
see
other
sovereign
nation-states
acquire
bitcoin
in
2022
and
perhaps
even
see
a
central
bank
make
an
acquisition.”

Their
comments
come
as
Tonga’s
former
MP

suggested
the
country
could
adopt
BTC

in
late
2022. 

In
essence,
more
regulation
and
better
products
will
open
up
the
crypto
space,
“bringing
a
greater
portion
of
the
hundreds
of
trillions
in
traditional
assets
into
the
digital
asset
ecosystem.”
Combined
with
miners’
hodling,
it
could
lengthen
the
cycle
and
drive
BTC
to
new
highs.

read original article here