It’s been all quiet on the crypto front so far in 2022, but according to analysts, a new bull run could be around the corner.
Crypto platform PlanB has hosted a poll on Twitter to debate ‘the next leg up for Bitcoin’. Blockstream CEO Adam Back replied that a prevailing factor of support for Bitcoin is the strong supply-and-demand feedback loop. With a capped supply and more investors moving crypto to cold storage, a supply squeeze would be likely to drive prices up long-term. At the same time, Back said, ‘reflexivity’, or the mutual relationship between positive expectations and positive price action, would create a snowballing effect.
In addition, the poll highlighted other factors that could trigger a new bullrun. These include the creation of a US spot ETF; a country following El Salvador with BTC as legal tender; and the effect of Lightning Network and Taproot upgrades.
Is it time for the Bitcoin bears to hibernate?