Popular crypto analyst Lark Davis Bitcoin (BTC) and he thinks the overall crypto market bull run will extend into 2022.
Lark DavisNoting to his 779,600 Twitter followers there are seven reasons why he’s optimistic about a price hike next year, he explains these seven reasons.
First, he thinks US regulators will approve a Bitcoin spot exchange-traded fund (ETF) in 2022. The Securities and Exchange Commission (SEC) recently delayed decisions on the Bitcoin ETF implementations of Grayscale and Bitwise.
Davis believes that until the launch of a full-fledged Bitcoin ETF, the market will continue to rise and then decline.
“As a reference; Gold rallied strongly before the spot ETF was approved, followed by a one-year decline and then a multi-year mega-rally.”
The analyst also states that the cycles are getting longer, meaning that the likely peak of the current cycle will occur in 2022.
Additionally, Davis believes major updates to Ethereum (ETH) could add to the overall bull market.
“Especially important will be the phase of transition to proof-of-stake, triple halving and limited-sharding distribution, which can be 3 or 4 X TPS in ETH. ETH remains the king of smart contracts, so what happens there has implications for the entire market.”
Other promising smart contract platforms will also play an important role, according to the analyst.
“Polkadot and Cardano are coming online, attracting even more money to the market. Avalanche, Polygon, ETH L2 and Solana will also continue to grow. These chains are just getting started. And all the major chains have committed billions of dollars in ecosystem incentives.”
Davis states that established brands have repeatedly jumped into the non-changeable token (NFT) space, arguing that NFTs will be “the first point of access to millions of cryptocurrencies.”
He also thinks that the game and metaverse tokens are on the verge of exploding in a big way.
“The games will bring in tens of millions or more of new users. Metaverse is the very multi-trillion dollar industry of the future. It’s hard to tell how big this will be and we have a lot of game and metaverse launches in 2022.”
Finally, Davis insists that big investment money is just beginning to enter 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.