The Crypto market bulls continue to struggle with bears.But market players have a positive outlook in the near term.So far, three bullish catalysts have been spotted for Bitcoin in the long term.
The cryptocurrency market sits in a danger zone as it falters following liquidations from last week. While fear rises, some market experts are already looking past that and outlining the positives for the Bitcoin market in the long term.
BTCUSD Chart by TradingView
Speaking to CNBC in a recent interview, Peter Johnson, a financial analyst, and partner at Jump Crypto reveals the many bullish catalysts for Bitcoin and the cryptocurrency market at large in 2022.
“One is the macro backdrop,” he said, referring to the inflation fears, which is believed to be very good for Bitcoin. In 2020 and in 2021, the market recorded a significant number of billionaires and working-class American citizens who showed great interest in investing in Bitcoin, mainly as an inflation hedge.
“The massive amount of capital that’s looking to be deployed into crypto hedge funds.” Is what he believes to be another bullish catalyst for the big bull this year. He concludes that Bitcoin will also benefit from a mass amount of talent. Asserting that some of the “smartest people in the world are building in crypto these days.”
Can Bitcoin be a reliable currency?
When asked about the recent market selloff, which has caused critics to once again question Bitcoin’s reliability as a store of value, the analyst maintains that the downward correction is needed for Bitcoin to bounce back.
“It’s part of the natural cycle and the maturation of Bitcoin and these other crypto-assets. But if you zoom out and look at the long-term frenzy, I think they’re all promising.”
“The volatility we’ve seen in Bitcoin and in crypto assets generally is expected, and I don’t think it fazes most folks that have been in the Crypto market.”
The analyst is indeed right. Over the years, market proponents have shown that they are more invested in Bitcoin’s long-term performance than the constant price volatility, which they believe is only temporary.
MicroStrategy’s Michael Saylor is one such Bitcoiner who has repeatedly bought Bitcoin both during bullish and bearish markets. The President of El Salvador has also followed in his footsteps. Both parties share the same sentiments as many institutional investors and long-term players who see their bet on Bitcoin paying off in the future.