According to Peter Johnson, a partner at venture capital firm Jump Capital, Bitcoin still has a lot of bullish catalysts in 2022 that will drive adoption and price appreciation.
Peter Johnson is the main bullish catalyst for Bitcoin in 2022.
Speaking to CNBC, Peter Johnson, head of crypto and fintech investment arm Jump Capital, said that he is bullish on Bitcoin and crypto in 2022 despite the current market downturn. . He noted that Bitcoin’s current volatility has some roots in the fact that it is still seen as a speculative store of value and a risky asset. He also noted the fact that the market has been affected by massive liquidations in the derivatives market.
However, he remains bullish on Bitcoin in the long run. According to him, Bitcoin and the crypto market are setting themselves up for a spike in 2022.
Zooming out, I think what’s really important is what we’re setting up for this year. I think there are some very positive catalysts for Bitcoin and crypto.
The first catalyst he mentioned is the current market-wide concern about rising inflation. He thinks the macroeconomic landscape is “very good for Bitcoin.” This is because it will likely push more investors to find a store of value to preserve their assets for Bitcoin.
Johnson also emphasized that there is a huge amount of capital ready to be deployed in the crypto market. Being a venture capitalist himself, he cited that there are many hedge funds looking to enter the crypto space.
Already billions of dollars have been raised to deploy into crypto. Hedge funds are increasingly deploying into space, He confirmed.
The final catalyst he mentioned is the fact that the crypto industry is attracting a lot of talent. He said that “the smartest people in the world are building in crypto today.” He surmised that these factors will play an important role in bringing about positive movements in the crypto market in 2022.
Bitcoin Price Sees Some Respite After Massive Fall
While the market waits for these long-term factors to emerge, the Bitcoin market appears to be consolidating within the $41,000 price range. Bitcoin price is currently at around $41,900, down 0.59% over the past 24 hours.
Data from Coinglass also shows that market liquidity has slowed down significantly. In the past 24 hours, there has been approximately $52 million more in Bitcoin market liquidations than yesterday’s over $142 worth of liquidations. Market participants are still watching to see which direction the market will turn next, as Bitcoin’s levels of fear and greed increase.