Bitcoin Miners Decide To Amass Large Sums : Here's Why $40K Is Huge Backing for BTC.

Bitcoin Miners Decide To Amass Large Sums : Here's Why $40K Is Huge Backing for BTC.

2022-01-12 | Selina Mathew

Bitcoin Miners Decide To Amass Large Sums : Here's Why $40K Is Huge Backing for BTC.

After a sluggish beginning to 2022, the biggest global crypto, Bitcoin, has begun to exhibit signs of life in the past two days. However, owing to the massive miner buildup that has occurred in the previous several days.

According to the Glass node chart, miners have already been undertaking active Bitcoin purchases, demonstrating complete trust in Bitcoin at $40K levels. According to current statistics, miners have been acquiring at the quickest rate following the May 2021 market drop.

It has been five days of consolidation for Bitcoin miners, with almost 6,100 BTC added to their purse. Moreover, as previously reported, mining behemoth Bitfarms acquired a remarkable 1000 Bitcoins throughout the latest market fall, bringing its overall holdings to 4,300.

BTC

BTC/USD 1 DAY PRICE CHART: SOURCE - COINMARKETCAP.COM

Is $40,000 the latest Bitcoin low?

Jurrien Timmer, Fidelity's director of Global Macro, gives an intriguing perspective. Timmer says that with the Fed's aggressive stance, the cryptocurrency market has joined the equities market in succumbing to bearish influence.
He does, however, note that Bitcoin has recently established a critical support region near $40,000 levels. Timmer examines this using the S-curve model.

Furthermore, the Fidelity CEO contrasts Bitcoin to some other conventional store of wealth, namely gold. He observes that the Bitcoin/Gold proportion has returned to the previous year's breakthrough area. This indicates that Bitcoin was somewhat oversold at $40,000.

As a result, the Fidelity director says, Bitcoin does indeed have technical as well as structural support at $40,000. Although if Bitcoin falls to this level, it may recover more quickly. The Fed CPI Inflation statistics and the closing of this week would be critical in assessing where we are headed!

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