Bitcoin nonetheless has numerous bullish catalysts in 2022 that can drive up its adoption and costs in accordance with Peter Johnson, a accomplice at enterprise capital agency, Soar Capital.
Peter Johnson’s main bullish catalysts for Bitcoin in 2022.
Talking with CNBC, Peter Johnson, who leads Soar Capital’s crypto and fintech funding arm said that he’s extremely bullish for Bitcoin and crypto in 2022 regardless of the present market despair. He notes that Bitcoin’s present volatility has a few of its roots in the truth that it’s nonetheless thought-about to be a speculative retailer of worth and a danger asset. He additionally famous the truth that the market has been affected by the huge liquidations within the derivatives market.
Nevertheless, he stays long-term bullish for Bitcoin. In accordance with him, Bitcoin and the cryptocurrency market is setting itself up for a large surge in 2022.
Zooming out, I believe what’s actually necessary is what we’re setting ourselves up for this yr. I believe there are a number of very constructive catalysts for Bitcoin and for crypto.
The primary catalyst he talked about was the present market vast concern over rising inflation. He considers that the macroeconomic backdrop to be “excellent for Bitcoin.” It is because it’s possible going to drive extra traders looking for retailer of worth belongings to protect their wealth to Bitcoin.
Johnson additionally highlights that there’s a large quantity of capital poised to be deployed within the crypto market. Being a enterprise capitalist himself, he cites that there are numerous hedge funds seeking to enter the cryptocurrency house.
There’s been billions of {dollars} which have been raised to be deployed into crypto. Hedge funds are more and more deploying into the house, He asserted.
The ultimate catalyst he mentions is the truth that the cryptocurrency trade was attracting numerous abilities. He states that “the neatest individuals on the planet are constructing in crypto lately.” He surmised that these elements are going to play key roles in bringing constructive actions within the crypto market in 2022.
Bitcoin’s worth seeing some respite from the sharp drop
Whereas the market waits for these long run elements to return to play, the Bitcoin market appears to be consolidating within the $41,000 worth vary. The value of Bitcoin is at present sitting at round $41,900, down 0.59% within the final 24 hours.
Information from Coinglass additionally means that market liquidations have slowed down considerably. Within the final 24 hours, there have been round over $52 million value of Bitcoin market liquidations in comparison with yesterday’s over $142 value of liquidations. Market members are nonetheless watching to see which path the market will swing in subsequent, as Bitcoin worry and greed degree rises.