Analyst highlights Key Bullish Catalyst for Bitcoin this Year
Bitcoin still has a lot of bullish catalysts in 2022 that will drive up its adoption and prices according to Peter Johnson, a partner at venture capital firm, Jump Capital.
Peter Johnson’s major bullish catalysts for Bitcoin in 2022.
Speaking with CNBC, Peter Johnson, who leads Jump Capital’s crypto and fintech investment arm stated that he is highly bullish for Bitcoin and crypto in 2022 despite the current market depression. He notes that Bitcoin’s current volatility has some of its roots in the fact that it is still considered to be a speculative store of value and a risk asset. He also noted the fact that the market has been affected by the massive liquidations in the derivatives market.
However, he remains long-term bullish for Bitcoin. According to him, Bitcoin and the cryptocurrency market is setting itself up for a massive surge in 2022.
Zooming out, I think what’s really important is what we’re setting ourselves up for this year. I think there are several very positive catalysts for Bitcoin and for crypto.
The first catalyst he mentioned was the current market wide concern over rising inflation. He considers that the macroeconomic backdrop to be “very good for Bitcoin.” This is because it is likely going to drive more investors seeking store of value assets to preserve their wealth to Bitcoin.
Johnson also highlights that there is a massive amount of capital poised to be deployed in the crypto market. Being a venture capitalist himself, he cites that there are a lot of hedge funds looking to enter the cryptocurrency space.
There’s been billions of dollars that have been raised to be deployed into crypto. Hedge funds are increasingly deploying into the space, He asserted.
The final catalyst he mentions is the fact that the cryptocurrency industry was attracting a lot of talents. He states that “the smartest people in the world are building in crypto these days.” He surmised that these factors are going to play key roles in bringing positive movements in the crypto market in 2022.
Bitcoin’s price seeing some respite from the sharp drop
While the market waits for these long term factors to come to play, the Bitcoin market seems to be consolidating in the $41,000 price range. The price of Bitcoin is currently sitting at around $41,900, down 0.59% in the last 24 hours.
Data from Coinglass also suggests that market liquidations have slowed down significantly. In the last 24 hours, there have been around over $52 million worth of Bitcoin market liquidations compared to yesterday’s over $142 worth of liquidations. Market participants are still watching to see which direction the market will swing in next, as Bitcoin fear and greed level rises.Source