With the previous market correction and the current consolidation, investors and traders alike are on pins and needles as to the future of the crypto space. That said, crypto trader and market analyst Lark Davis give 7 positive reasons as to why Bitcoin (BTC) and the crypto market bull run can do well into 2022.
1. US SEC to Approve SEC Bitcoin ETF
Due to market manipulation concerns, the United States Securities and Exchange Commission (SEC) has been hesitant about approving a spot Bitcoin ETF. However, the pressure is starting to build on the SEC’s shoulders as even lawmakers are calling them out for their indecision. These indecisions, eventually, have led to funds moving out to overseas locations.
The crypto analyst believes that a spot BTC ETF will probably arrive in 2022 and that the market will stay bullish until then. In addition, he gave a fair warning that a bear cycle will happen once SEC gives the go signal.
2. Bull Run Cycles Appear to be Longer
Davis explains that the bull run cycles appear to be getting longer as more institutional money pours in and the crypto market matures. Compared to the previous cycles that lasted for 1 to 1 and a half years, the present cycle can extend further into 2022.
3. Major Upgrades in Ethereum to Happen in 2022
Crypto traders are slowly getting enthusiastic about Ethereum’s transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) that’s expected to happen in mid-2022. New updates like limited sharding rollout and triple halving can increase triple or quadruple the transactions on the Ethereum blockchain.
4. DOT and ADA Continue to Grow
Ethereum’s main competitors like Cardano (ADA) and Polkadot (DOT) are stepping up to fulfill market needs while gaining higher market prominence. Likewise, other projects like Avalanche, Polygon, ETH L2, and Solana will continue to grow.
5. NFT Market to Get Bigger
The year 2021 can be marked as the year of Non-Fungible Tokens (NFTs) as they continue to grab the public’s attention. A few prominent global brands have been extremely utilizing the power of NFTs recently.
Moreover, Davis believes that NFTs could be the “first access point for millions into crypto”.
6. Gaming and Metaverse to Boom in 2022
The crypto world has witnessed the booming growth of gaming and metaverse, as well as their integration into different industries. Davis believes that both will generate millions of dollars and new users. He also stated that there is a lot to look forward to in 2022.
7. Big Money Continue to Pour In
According to Davis, institutional money flowing into cryptocurrency will continue to increase as they are slowly realizing that this is the “best tech investment class of this decade.” With inflation rising steadfast, they will be left with no choice but to invest in crypto.
Lark Davis concluded his thoughts in one final tweet:
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Source: Cryptocurrency - investing.com
