As we have just entered the year 2022, the decline in Bitcoin, the leading cryptocurrency, has caused investors to be nervous.
However, Peter Johnson, partner of the capital company Jump Capital, speaking to CNBC, said that there is nothing to be alarmed about and that despite this decline, 2022 will be good for Bitcoin.
According to Peter Johnson, who heads Jump Capital’s crypto and fintech investment arm, there are many reasons why Bitcoin will increase its price in 2022.
Johnson stated that the current volatility in Bitcoin is due to Bitcoin’s speculative nature and being a risky asset.
Saying that the long-term rise for Bitcoin is still continuing, the analyst said that the crypto money market is just preparing for a big fluctuation:
“Looking further at the issue, I think what really matters is what we set ourselves up for this year. I think there will be many positive catalysts for Bitcoin and crypto this year.”
The first catalyst Johnson mentions for Bitcoin is the view of Bitcoin and the cryptocurrency market as a hedge in the face of rising inflation.
Because Johnson thinks that as inflation increases, many investors will enter the cryptocurrency market to protect their wealth.
Noting that there is a large amount of capital ready to enter the crypto market, Johnson also stated that there are many hedge funds that want to enter the crypto market.
“There are billions of dollars raised to be distributed in crypto. Hedge funds are increasingly spreading into space.”
The last catalyst the analyst mentioned is that the crypto industry is attracting very talented people.
“The smartest people in the world are building crypto these days,” Johnson said, noting that the smartest people in the world are starting to enter the crypto industry and making many new ventures.
Johnson predicts that these factors will play a key role in generating positive developments in the crypto market in 2022.
*Not investment advice.