Why This Bear Market Is Especially Bullish – Bitcoin Magazine
This is a written excerpt from the “Bitcoin Magazine Podcast,” hosted by P and Q. In this episode, Sam Callahan joins them in talking about the three main reasons why he is bullish on Bitcoin, even during the depths of a bear market.
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Sam Callahan: That high hash rate all the time is definitely a positive. I think that’s really a job for those miners throughout 2021 who had access to capital and were basically able to get a bunch of capex and decided they were going to expand their facilities. And what we’re seeing now is that those plans are actually starting to emerge and they’re actually connecting the miners who planned them 9-12 months ago.
There were also supply chain issues. So this hash rate increase, I think it’s more than just these big miners are finally getting their stuff online, rather than more miners coming back or something like that to talk. This is a good thing for the Bitcoin network. I think you’re seeing the total supply that HODLers hold over the long term hitting an all-time high, which is another positive development.
I think it just goes to show that there is a convict base of HODLers who don’t move their coins and everyone on that call right now is probably a part of that. The other thing is that there is still institutional interest throughout this bear market. Compared to 2018, there weren’t really these developments at the bottom of a bear market, it was really quiet and it was kind of sad. You now have news, like the release of Fidelity, and the thought of introducing Bitcoin to millions of individual brokerage accounts. You’ve also got Franklin Templeton – almost like a trillion dollar manager – still in the middle of a bear market with bitcoin down 70%, and they’re still building the infrastructure for the next bull run.
So this is optimistic for me. It just shows that despite the price action, there is still excitement and interest at the institutional level and the infrastructure is being built. This is the kind of thing I like to see.
Those three things are probably what I’m going to say: The hash rate is absolutely high, that’s fine; Miners have stopped selling or at least for now; I’ve got long term HODLers and then I’ve got institutional interests. Those three things, those are upside developments. I’m so excited.