Since May, there haven’t been a lot of bull rallies in the crypto market. The currencies have fluctuated to a large degree. Bitcoin’s price has remained pretty stable, fluctuating between $20,000 and $17,749. At the time of publication, Bitcoin is selling at $19,895 right after a drop of around 0.95% over the last 24 hours.
After hitting $20,300, the flagship currency has been fluctuating between $19,000 and $20,000. Even the market indicators are not pointing towards a positive price movement. According to the relative strength index (RSI), the price is overbought and this will lead to a drop in the next few days.
Reasons to expect bull run in 2022
The market indicators point towards a bearish movement. However, if you look at the big picture, there are still a few reasons why you could expect another bull run by Q4 2022.
1. The Ethereum Merge is a success
According to Manas Agrawal and Gautam Chhugani, Bernstein analysts, while the switch from PoW to PoS may happen in a bit, there are still some skepticism. They are predicting that it will be a positive catalyst in the crypto sphere.
2. Ether may top over Bitcoin in the crypto world
What is important in digital assets is the concept of network effect. Bitcoin is famous because it was first and because it has the highest user base. However, Ethereum is also catching up.
The ETH token has been getting a lot of attention since 2017 and it has been working hard to improve its scalability and privacy features ever since then.
More than that, innovation is crucial. Bitcoin may have been there first, but its inability to evolve is playing against it. So, even if Ether doesn’t have the biggest following, it could overtake the leading currency.
3. The pivot of NFT to gaming and play-to-earn to play-to-own
Many speculations are focusing on the potential of new coins. The market is trying to understand how these could evolve and become an attractive options for both serious investors and casual users.
The most recent among them is the NFT (non-fungible token) movement. As a token with a defined rarity, it can be used in game-developer gaming platforms. On the other hand, there are rumors that a whole new trend called ‘play-to-own’ will emerge.
These are tokens that can be used to play games. The user spends time in the game and buys the game assets. When the game is finished, they can trade those assets on a secondary market.
4. The next year could be what analysts call “the year of adoption”
With digital currency, you can use it anywhere in the world. You don’t need to deal with banks, travel or exchange rates while transacting online or offline.