Bitcoin cycle is far from over and miners are here for a long time: loyalty report

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Fidelity Digital Assets – the crypto wing of Fidelity Investments that manages $ 4.2 trillion in assets under management – shared its “two sats” on the future of the digital asset space. The main takeaways concerned the behavior of miners and the adoption of the Bitcoin Network (BTC).

In the annual report released last week, the group shared some information about the world of BTC mining:

“As Bitcoin miners have the most financial incentives to best guess the adoption and value of BTC (…) the current bitcoin cycle is far from over and these miners are investing for the long term. “

The report said that the hash rate recovery in 2021 “was truly amazing”, especially in the face of China, the world’s second largest economy banning Bitcoin in 2021. The hash rate rebound since the ban thanks to the power of BTC hash being “more widely distributed around the world” has shown that miners are set on long term profits.

The statements aligned with recent sales performance of the miners. The key metric on the chain indicates that Bitcoin miners are in a “massive” BTC accumulation mode, as the miners show no desire to sell.

Related: Fidelity Executive Says Bitcoin Is ‘Technically Oversold’, Making $ 40,000 a ‘Critical Support’

When it comes to looting oranges in entire countries, Fidelity has made some interesting predictions about more nation-states accepting BTC as legal tender:

“There is a very high stakes game theory at play here, that if bitcoin adoption increases, countries that get bitcoin today will be more competitive than their peers. So we wouldn’t be surprised to see other sovereign nation states acquire bitcoin in 2022 and maybe even see a central bank make an acquisition. “

Their comments come as the former Tonga MP has suggested the country may adopt BTC at the end of 2022.

Essentially, more regulation and better products will open up the crypto space, “bringing more of the hundreds of billions of traditional assets into the digital asset ecosystem.” Combined with miner hodling, this could lengthen the cycle and drive BTC to new highs.

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