The Bitcoin cycle is far from over and miners are in it for the long haul, reports Fidelity

The Bitcoin cycle is far from over and miners are in it for the long haul, reports Fidelity

Fidelity Digital Assets (the cryptocurrency arm of Fidelity Investments, which has $4.2 trillion in assets under management) shared their “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 (BTC) network.

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

“As Bitcoin miners have the greatest 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 banning of Bitcoin by China, the second largest economy in the world. The hash rate rally since the ban, thanks to BTC hash power being “more widely distributed around the world”, showed that miners are determined to make long-term profits.

The statements are in line with recent miner sales performance. Key on-chain metrics indicate Bitcoin miners are in “accumulation” modemassive” of BTC, as they show no desire to sell.

As for the hoarding of orange coins 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. Therefore, we would not be surprised to see others Sovereign nation-states buy Bitcoin in 2022 and perhaps even see a central bank make a purchase.”

His comments come as the former Tongan MP suggested that the country could adopt BTC by the end of 2022.

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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.” Combined with miner hodling, it could lengthen the cycle and push BTC price to new highs.