According to IntoTheBlock, a number of positive catalysts could support Bitcoin and Ethereum prices in 2022. At the time of publication, Bitcoin is trading at $42,630, minus the slight gain it has accumulated towards the end. week. Ethereum is also trading down at $3,244, after positive weekend trading.
The majority of cryptocurrencies in the top 100 have depreciated at press time with the exception of Cardano (ADA), Litecoin (LTC), Monero (XMR) and a few other tokens. Negative catalysts emerge for Bitcoin price, such as the Fed’s quantitative tightening and the 4-year cycle.
The Federal Reserve tackled “balance sheet normalization,” or quantitative tightening, as inflation rose to 7%, a 40-year high. Four-year cycles represent markets that operate in four-year cycles in which Bitcoin price rallies to new highs like 2013, 2017 and 2021. The crypto markets are divided on what to expect. followed by a mixture of hope and despair.
These are positive catalysts
Bitcoin price
Despite three rate hikes, Bitcoin price surged to a high of approximately $20,000 in late 2017. However, BTC entered a bear market in 2018 as the Federal Reserve began tightening policy. its currency.
After the sharp price drop in December, about 25% of Bitcoin addresses dumped their holdings as the price plummeted from $20,000 to $6,000.
IntoTheBlock points out that times have been different because despite the 50% drop in price in May 2021 and 40% since the most recent high, the number of addresses holding BTC has continued to grow (albeit by a decent rate). modest).
#Bitcoin The hash rate recently hit a new all-time high of 218.35 million TH/s.
After the massive mining migration, the Hash Rate was able to quickly recover, up a whopping 252% since the June lows.
Mining Analysis: https://t.co/qVHxFtqx44 pic.twitter.com/zsa1pxGeCr
– IntoTheBlock (@intotheblock) January 17, 2022
The steady increase in holders, in contrast to the drop seen in early 2018, suggests that there is still a solid level of interest in Bitcoin, which remains a positive catalyst. The on-chain analytics firm also pointed out that Bitcoin hash rate recovered quickly, up 252% since the June low following China’s crypto ban.
Ethereum Price
Likewise, the number of Ethereum addresses has hit a record high of 68.34 million, a new all-time high.
While Ethereum price remains below ATH, transaction count is still approaching all-time high, with increasing number of owners, showing growing demand.
Quantily $ ETH Ownership continued to grow at 68.34 million addresses, a new all-time high.
While the price of # Ethereum remains below the sport level, the number of transactions remains close to high with the number of holders growing, reflecting growing demand. pic.twitter.com/AERkYip3bx
– IntoTheBlock (@intotheblock) January 17, 2022
It notes that day-to-day transactions on Ethereum have plummeted in 2018 due to price drops and evaporating speculation. Today, the number of trades remains high and is less correlated with price action.
IntoTheBlock has noted other positive and potential catalysts such as continued NFT expansion, increased DAO adoption, more countries accepting Bitcoin as a legal tender, DeFi attracting millions of users, stablecoins becoming more popular. popular trend, etc.
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