Bitcoin is likely to sell strongly over the next year or so. Do the actions of crypto miners support it?

Crypto-mining stocks have risen sharply this year, led by Bitcoin 164% year-on-year so far. However, financial executives believe Bitcoin will experience a massive selloff in 2022, according to a study by global wealth management firm Natisys Investment Managers. In this context, what will cryptocurrency mining stocks do in 2022?

Although the market expects the value of Bitcoin to decline in the coming years, more organizations across the world have entered the digital asset space, and enough consumers continue to have the mind.

At the same time, the survey shows that 28% of research institutes are now investing in cryptocurrencies, with around a third planning to increase their share of cryptocurrencies next year first.

However, the market share of crypto miners such as Marathon Digital (MARA.US), Riot Blockchain (RIOT.US) and Hive Blockchain fell last month after Bitcoin four weeks directly after correcting its historic high in October. . (hive.US).

“Bitcoin is still viewed as a hedge against inflation, especially by young investors,” said Matt Maley, CEO of Miller Tabak.

The US CPI hit its highest level in nearly 40 years in November. As an alternative to fiat after the financial news was released, Bitcoin briefly went from $ 1,000 to $ 50,000 before falling back, now priced below $ 47,700.

Despite Bitcoin's weakness in recent weeks, profitable companies such as MicroStrategy (MSTR.US) and Phunware (PHUN.US) have "bought low".

What will cryptocurrency miners do in 2022 as Bitcoin prices continue?

D.A. Davidson analyst Chris Brendler said Marathon Digital has one of the lowest bitcoin mining costs, with competition around $ 6,500. This means that the price of Bitcoin must fall to reach the breaking point.

In other words, Marathon Digital and other low breakeven miners will be able to withstand fluctuations in Bitcoin prices. This is especially true for crypto miners such as Bit Digital (BTBT.US), which enters into monitoring contracts with third parties for a fixed price. The goal of companies like Riot Blockchain (RIOT.US) is to become a fully integrated Bitcoin miner with their own data center.

Crypto miners have already released quarterly financial data, but are still down due to Bitcoin's decline.