December 1, 2022

Bitcoin metrics signal a return to growth

More and more signals are coming from the cryptocurrency market in favor of continued growth: miners are holding back Bitcoin on their wallets, ASIC deficits widened, and institutional investors' assets increased by 50% last month. Let's consider these indicators in more detail.
Bitcoin metrics signal a return to growth

Correction of Bitcoin from $ 58 thousand occurred due tominers, as they have significantly increased sales. However, after the second price reduction to $ 45 thousand, their activity has significantly weakened. The network capacity (hash rate) continues to grow, which, together with the drop in sales volumes, indicates the desire of miners to keep a part of Bitcoin in the hope of further growth.
Bitcoin metrics signal a return to growth

An indication of the growing demand for cryptocurrencies ishype around ASICs. Bitmain pointed to a half-year order queue last year. Recently Innosilicon's stopped accepting new orders, and Canaan announced an agreement with Core Scientific and Hive Blockchain for the supply of 12.5 thousand machines (the total amount of pre-orders exceeded 100 thousand ASICs). The shortage of ASICs also affected the secondary market, so on Ebay they ask for an average of $ 5,000 for a Whatsminer M20S with a capacity of 68 TH / s.

New institutionalinvestors. According to Cryptocompare, the total assets under management (Assets Under Management - AUM) from mid-January to 23 February rose 50% to $ 43.9 billion.
Bitcoin metrics signal a return to growth

Leadership continues to be held by Grayscale, whose fund has $ 35 billion worth of Bitcoin. In its Q4 report, the company disclosed the share of institutional investors: 93% of total capital inflows.

Financial holding JPMorgan, famous for180 degree reversal in relation to cryptocurrencies, recommends investors to hold 1% of the portfolio in Bitcoin "risk adjusted". According to the bank's long-term forecast, the value of the coin could reach $ 146,000.

Despite the high cost of Bitcoin, capitalcontinues to arrive in this sector of the economy. This trend, coupled with the desire of the leading players to hold on to the asset, can lead to further growth in value.

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Analytical group StormGain