The recent crypto market correction and the subsequent consolidation process make investors’ predictions about the next move of cryptocurrencies “uneasy”. Lark Davis, the popular name of the crypto world, Bitcoin (BTC) and shared seven reasons why he expects the “bull cycle” of other crypto assets to extend into 2022.
1. SEC Approved Spot Bitcoin ETF Problem
In the US, the SEC’s refusal to approve a spot Bitcoin ETF, citing market manipulation concerns, may have been a major factor. Moreover, many funds moved overseas as a result, putting pressure on the SEC, as even former congressmen urged the “securities regulator” to get out of their indecision.
Lark Davis believes that a spot Bitcoin ETF will likely be approved in 2022 and the market will continue to rise until then. But he warns that a bear cycle will begin soon after that. He also added: “For reference, there was a strong rally of gold before the spot ETF was approved, followed by a one-year decline and then a multi-year mega-rally”.
2. Taurus Running Cycles Are Getting Longer!
According to Davis, as crypto markets mature and host even more institutional investors, bull run cycles are getting longer to complete. Unlike previous cycles lasting 1-1.5 years, new cycles may extend until 2022.
3. Ethereum (ETH) Network Upgrade
Ethereum (ETH) There is growing optimism about the transition of the network from Proof-of-Work (PoW) to Proof-of-Stake (PoS). The expected timeline for the same could be around mid-2022. Additional updates such as triple “halving” and limited sharding can increase transactions on the Ethereum blockchain by 3-4 times.
4. Significant Opportunity to Strengthen Ethereum Competitors
Like Polkadot (DOT) and Cardano (ADA) Ethereum competitors, take the responsibility to meet market needs and stand out in higher market. In addition, other projects such as Polygon, ETH L2, Avalanche and Solana will continue to grow.
5. NFT Market Will Continue to Grow
Along with DeFi (decentralized finance), immutable tokens (NFTs) have become dominant in the crypto market this year and have captured public attention. Some major global brands have been making heavy use of the power of NFTs lately. Davis believes NFTs could be the first point of access for millions of people to get into crypto.
6. The Game and Metaverse Space Will Continue to Grow
Gaming and the metaverse seem to be the two biggest industries of the next decade. Crypto projects operating in this area will continue to be widely adopted over time.
7. The Money Into Crypto Is Growing
According to Davis, institutional money flowing into crypto will continue to rise as he realizes this is the best technology investment of the next decade. However, with inflation rising steadily, they will have no choice but to invest in crypto.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.