There are positive catalysts to watch from Bitcoin and Ethereum in 2022, according to IntoTheBlock
According to IntoTheBlock, some positive catalysts could aid the price of Bitcoin and Ethereum in 2022. At the time of publication, bitcoin was trading at $42,630, undercutting the modest gains made during the weekend. Ethereum was also trading at $3,244 after a positive weekend trading.
Barring Cardano (ADA), Litecoin (LTC), Monero (XMR) and a few other tokens, most of the top 100 cryptocurrencies were losing value at press time. There are negative catalysts for the price of bitcoin, such as the Fed’s quantitative tightening and a 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 refers to the markets operating in a four-year cycle during which the price of bitcoin reached new highs, as in 2013, 2017 and 2021. The crypto markets are divided on what will happen next due to a mix of hope and despair.
There are positive catalysts here
bitcoin price
Despite three rate hikes, the price of bitcoin reached a high of around $20,000 in late 2017. However, BTC entered a bear market in 2018, when the Federal Reserve began tightening its monetary policy.
After a sharp drop in price in December, about 25% of bitcoin addresses gave up their holdings as the price fell from $20,000 to $6,000.
IntoTheBlock reports that this timing is different, as the number of addresses holding BTC continues to increase (albeit at a fairly modest rate), despite a 50% drop in prices in May 2021 and a 40% drop since the most recent high. .
#bitcoin The hash rate recently reached a new all-time high of 218.35m TH/s.
After the great mining migration, the hash rate has recovered quickly, up 252% from June lows.
Mining Analysis: https://t.co/qVHxFtqx44 pic.twitter.com/zsa1pxGeCr
— IntoTheBlock (@intotheblock) 17 January 2022
The steady increase in holders, in contrast to the decline seen at the beginning of 2018, suggests that bitcoin still has a solid degree of momentum, which continues to be a positive catalyst. The on-chain analytics firm also states that bitcoin hash rate China’s crypto has recovered sharply after the ban, rising 252% from its June lows.
price of ethereum
Similarly, the number of addresses on Ethereum reached a record high of 68.34 million, a new all-time high.
While Ethereum Price Remains Below ATH, Transaction Numbers Are Still Reaching All Time Highs number of holders, indicating that demand is increasing.
number of $ETH Holders continued to grow as it reached 68.34 million addresses, a new all-time high.
while the price of #ethereum Still below Eth, the number of transactions remains near its high with increasing number of holders, reflecting rising demand. pic.twitter.com/AERkYip3bx
— IntoTheBlock (@intotheblock) 17 January 2022
It notes that daily trading on Ethereum declined sharply in 2018 as prices plummeted and speculation ended. Today, the number of trades remains high and is less correlated with price action.
IntoTheBlock mentions other positive and potential catalysts such as the continued expansion of NFTs, adoption of DAOs, more countries adopting Bitcoin as legal tender, DeFi attracting millions of users, stablecoins going mainstream and so on. Like.