The firm’s Bitcoin analyst SwanBitcoinSam Callahan, stated that even in the midst of the current bear market, the pioneering cryptocurrency has factors that can favor its price in the medium term.
Callahan referred on a podcast the recent increase in Bitcoin’s computing power, the resurgence of institutional investment and the fact that the supply of bitcoin in the hands of long-term savers has reached an all-time high, as three factors of a bullish sign.
Regarding the processing power of the Bitcoin network, Callahan stated that the recent historical maximum reached is due to miners who had access to capital during 2021 and decided to expand their facilities.
“What we are seeing now is that those plans have started to materialize. Supply issues have been fixed and the hash rate increase comes more from large farms that have optimized their operations than from connecting new miners. This is a good thing for the Bitcoin network,” says the specialist.
Investment in bitcoin surges again
Callahan also referred to the recent supply record high in the hands of bitcoin savers, a fact reported by CriptoNoticias. The specialist stated that it is striking that a record accumulation is recorded in the midst of a bear market. On September 16, the analytics firm Glassnode announced that bitcoin long-term savers had reached 13.62 million BTC, which represents 71% of the circulating supply of Bitcoin.
The third aspect that Callahan highlights as favorable to bitcoin is the resurgence of institutional investment. He specifically mentioned ad of Fidelity Investments, which will offer access to bitcoin to its clientsas reported in this medium.
“You are seeing more institutional interest in this whole bear market. In 2018, there really weren’t these developments at the bottom of the bear market, it was very quiet and it was kind of sad. Now there is encouraging news, such as the departure of Fidelity and the possibility of offering bitcoin to millions of individual brokerage accounts, “said the investor.
The bitcoin analyst highlighted that these investment initiatives, despite the bearish price action, “there is still enthusiasm and interest at the institutional level and the infrastructure is being built.”