Popular crypto analyst Lark Davis thinks the Bitcoin (BTC) and overall crypto market bull run will extend well into 2022.
Davis tells his 779,600 Twitter followers that he has seven reasons why he’s optimistic about a price surge next year.
First, he thinks it’s likely that US regulators will approve a Bitcoin spot exchange-traded fund (ETF) in 2022. The Securities and Exchange Commission recently delayed decisions on Grayscale and Bitwise’s Bitcoin ETF applications.
Davis believes 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 notes that cycles are getting longer, meaning the current cycle’s likely top will happen sometime in 2022.
Additionally, Davis says 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.”
Other up-and-coming smart contract platforms will also play a role, according to the analyst.
“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.”
Davis notes that well-established brands are jumping into the non-fungible token (NFT) space in droves, arguing that NFTs will be “a first access point for millions into crypto.”
He also says that gaming and metaverse tokens are just on the verge of breaking out in a huge way.
“Gaming will bring in tens of millions or more new users.
The metaverse is a future multi-trillion-dollar industry. It is hard to convey how big this will be, and we have a lot of game and metaverse launches in 2022.”
Lastly, Davis argues that big investment money is just starting to funnel into crypto.
“Big money starting to figure out that this is the best tech investment class of this decade. Plus with inflation running rampant crypto is a no-brainer.
Yet, most are still on zero, but it won’t stay that way! We already are seeing many multi-hundred million dollar fundraisers.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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