- HC Wainwright’s assessment of bitcoin’s future potentiality comes in the wake of Bitcoin 2022 held in Amsterdam from October 12-14.
Bitcoin price may be stuck around $20,000 and miners in increasing pain as fear, uncertainty and doubt spike, but according to corporate investor HC Wainwright is Bitcoin is “alive and well.”
The rating company’s latest view of Bitcoin mining and the crypto space is that a bullish flip is inevitable, especially in an environment of positive money supply. In short, reports of the flagship cryptocurrency being dead, even amid the troubles around public mining firms, are ‘greatly exaggerated.’
Rising hashrate reflects confidence in crypto’s future
In an industry update published 2 November, HC Wainwright’s Kevin Dede says rumblings over the future of Bitcoin have gone a notch higher since Ethereum’s merge.
These have also been accelerated by the increase in network hash rates to all-time highs above 280 EH/s over the past few weeks as price stagnated around $20,000 has not helped but fuel fear of miner capitulation and further pain in the market.
And amid all these are questions around bitcoin’s inflation-hedge worthiness, regulation and other many other exogenous factors.
HC Wainwright’s assessment is that the rising network hashrate is “a direct reflection of the confidence in crypto’s future powered by investments miners made mostly last year.”
As such, the investment banking provider expects the bitcoin mining industry will continue to feel the effects of the crypto winter. The pain could persist to the next halving and failing to plan operations with this scenario in mind would be sloppy.
So what next for BTC price and the bitcoin mining ecosystem? HC Wainwright offered what it believes constitutes a bullish outlook for the world’s largest cryptocurrency by market cap. One factor to watch is the Fed’s monetary policy.
“Our more bullish sentiment lies on the side of a moderation in the Fed’s tightening monetary policy. A normalized money supply may bring investors back to risk-on assets, a bucket into which the current bear market seems to have dumped crypto,” Dede wrote.
The post Reports of Bitcoin’s death are greatly exaggerated- HC Wainwright appeared first on CoinJournal.