The crypto market seems to be recovering following some recent corrections. Now, a popular analyst said that the bull run will be resuming into 2022. Below, you can see some of the main reasons for which this will be happening.
It’s been just revealed by the online publication the Daily Hodl that the crypto analyst Lark Davis thinks the Bitcoin (BTC) and overall crypto market bull run will extend well into 2022.
Davis explained that he has seven reasons why he’s optimistic about a price surge in 2022.
Main reasons for the BTC bull run in 2022
The first reason that he mentions is the fact that the US regulators will approve a Bitcoin spot exchange-traded fund (ETF) in 2022. The SEC recently delayed decisions on Grayscale and Bitwise’s Bitcoin ETF applications.
Davis said that the market will remain bullish until the release of a full-fledged Bitcoin ETF, and then it will turn bearish.
“For reference, gold had a strong rally before the spot ETF was approved, followed by a year of down prices, followed by [a] multiyear mega rally.”
The analyst also made sure to highlight the fact that cycles are getting longer – this means the current cycle’s likely top will happen sometime in 2022.
He also highlighted the fact that the upcoming major upgrades to Ethereum (ETH) could contribute to the overall bull market.
“Of particular importance is the move to proof of stake, triple halving, and limited sharding roll out which could 3 or 4 X TPS on ETH. ETH remains the king of smart contracts, so what happens there has implications for the whole market.”
The analyst also said that the up-and-coming smart contract platforms will also play a role.
“Polkadot and Cardano are coming online which will draw in even more money to the market. Avalanche, Polygon, ETH L2, and Solana will continue to grow. These chains are just getting started. Plus all the major chains have committed billions in ecosystem incentives.”