The latest market correction and the recent consolidation phase make investors believe that the Bitcoin cycle will probably get extended to 2022. Renowned crypto analyst and YouTuber Lark Davis has shared some reasons of optimism as to why Bitcoin and the other tokens’ bull run can extend to 2022. Here they are:
SEC’s Spot Bitcoin ETF approval
The U.S. Securities and Exchange Commission (SEC) has been seriously resilient to approve a spot Bitcoin ETF, citing huge market manipulation. However, SEC cannot extend the approval to an indefinite time as the pressure for the approval is building.
SEC recently even called crypto exchange heads to talk to come to a conclusion.
Davis believes that we will see a spot Bitcoin ETF arrival sometime in 2022, and the market will continue its bullish attitude until then due to continuous institutional money inflow. He, however, warned that a bear cycle would begin immediately after that, so investors should know their exit spots.
Bitcoin bull run cycles get longer with market maturity
As the market matures, the Bitcoin bull run cycles start getting longer due to more and more individual and institutional participation and adoption. Davis believes that unlike the previous cycles with roughly 1-1.5 years, the current cycle could extend to 2022.
Ethereum’s development and the competitors’ growth
Ethereum Network seems to be shifting from Proof-of-Work (PoW) to Proof-of-Stake (PoS) by mid-2022, along with multiple other updates, including limited sharding and triple halving. These have the potential to increase the transactions by 3-4 times on its blockchain leading to a bullish attitude among investors.
Ethereum competitors like Polkadot (DOT), Cardano (ADA), Avalanche (AVAX), Solana (SOL), and Polygon (MATIC), on the other hand, are also in good shape and are taking aggressive steps to increase market prominence.
NFT and metaverse growth
Along with Bitcoin, the immense growth of NFT, gaming, and metaverse sectors is nothing new. Despite November’s bleeding market, metaverse tokens continued to mark new highs. NFTs have also stormed the crypto market this year with the huge jump by many big global brands like Disney and Marvel.