- 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.
They have been accelerated by an increase in network hash rate to all-time highs of 280 EH/s in the last few weeks. Price stagnation around $20,000 has not helped but fuel fear and further pain in 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.”
According to the investment banking provider, the crypto winter will continue to affect the bitcoin mining industry. This could cause more pain than the previous halving. Failure to plan operations for such a scenario would be negligent.
What does the future hold for bitcoin mining and BTC prices? HC Wainwright offered what it believes constitutes a bullish outlook for the world’s largest cryptocurrency by market cap. The following factors should be considered: 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.