Bitcoin and Ethereum Positive Catalysts to Watch Out for in 2022: IntoTheBlock

IntoTheBlock

Here are some positive Bitcoin and Ethereum catalysts to watch in 2022, according to IntoTheBlock

According to IntoTheBlock, some positive catalysts might aid Bitcoin and Ethereum prices in 2022. At the time of publication, Bitcoin was trading at $42,630, paring off the slight gains it accrued during the weekend. Ethereum likewise traded down at $3,244, after positive weekend trading.

The majority of the top 100 cryptocurrencies were losing value at press time, except for Cardano (ADA), Litecoin (LTC), Monero (XMR) and a few other tokens. Negative catalysts are looming for Bitcoin price, such as the Fed’s quantitative tightening and the four-year cycle.

The Federal Reserve addressed “balance sheet normalization” or quantitative tightening as inflation rises to 7%, a 40-year high. The four-year cycle denotes markets working in a four-year cycle during which Bitcoin’s price rises to new highs like it did in 2013, 2017 and 2021. Crypto markets are split on what will happen next due to a mix of hope and despair.

Here are the positive catalysts

bitcoin price

Despite three rate hikes, the price of Bitcoin reached highs of around $20,000 in late 2017. BTC, however, entered a bear market in 2018 when the Federal Reserve began to tighten monetary policy.

Following a sharp price decrease in December, around 25% of Bitcoin addresses dumped their holdings as prices plummeted from $20,000 to $6,000.

IntoTheBlock points out that this time is different since, despite price dropping 50% in May 2021 and 40% since the last high, the number of addresses holding BTC has continued to grow (albeit at a fairly slow pace). modest).

The steady increase in holders, in contrast to the drop seen in early 2018, suggests that there is still a solid degree of interest in Bitcoin, which remains a positive catalyst. The on-chain analytics firm also points out that Bitcoin’s hash rate has recovered swiftly, rising 252% since the June lows following China’s crypto ban.

Ether price

Likewise, the number of Ethereum addresses reached a record high of 68.34 million, a new all-time high.

While the price of Ethereum remains below the ATH, the number of transactions is still approaching all-time highs, with an increasing number of holders, indicating that demand is growing.

He notes that daily Ethereum transactions fell sharply in 2018 as prices fell and speculation evaporated. Today, the number of transactions remains at a high level and is less correlated to the evolution of prices.

IntoTheBlock has noted other positive and potential catalysts like continued expansion of NFTs, increased adoption of DAOs, more countries adopting Bitcoin as legal tender, DeFi attracting millions of users, stablecoins going mainstream and so on.

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