5 Factors For 2022
1) Black Swan Event
2) Bitcoin Dominance
3) Institutional Investors
5) Layer 2 & 3 Development
Happy New Year, and welcome to a completely different Crypto Market for 2022!!!
2021 brought us several twists and turns for what to expect short term, even as the year was ending. The Crypto Market has never disappointed in staying the same...that is to say...it's always changing. "The more things change, the more they stay the same."
For most of Bitcoin's life, the Crypto Market had been much more predictable than what we experienced during 2021. The Crypto Market participants before 2021 have been largely retail investors like you and I. A particular pseudonymous character who goes by "Plan B" published a stock-to-flow prediction model in March 2019 based largely on the relationship between Bitcoin production supply rates and its current coin supply. Due to Plan B's amazingly accurate price chart predictions, Plan B garnered millions of followers. But the prediction model is based largely on static information and historical data. Enter in the unpredictability of a Black Swan Event, the excitement of Mankind's unfettered energy toward innovation and experimentation---especially within a lockdown world, and now (especially during the latter part of 2021) we are seeing a dynamic change in the Crypto Market.
This dynamic and less predictable change in the Crypto Market is apparently due to a changing narrative, wherein we are hearing new buzzwords practically every day with robust discussion and conversation bubbling up around them such as #NFT, #metaverse, #p2e, #DeFi, #YieldFarming, #parachain, #sidechain, #oracle, #ZeroKnowledgeProof, #ZKrollup, #Solana, #AxieInfinity, #MemeCoin, #ShibaInu, #gala, #UFO, #Akropolis, #Aave, #Doge, #Sandbox, #illuvium, #SmartChain, #GameFi, #CRO, #helium, #Avax, #BoredApe, #BrainVomit, #CryptoPunk and more.
Bitcoin's dominance just went below 40%...close to its all-time-low. In other words, everything besides Bitcoin now comprises 60%+ market share. Recently, Bitcoin's all-time-high of $69,000 on 11/08/2021 then dropped 39% to $42,200 on 12/03/2021, a 39% drop in 3 weeks. The total global crypto market cap went from an all-time-high of $3.1T to $2.19T from 11/08/2021 to 12/29/2021, a 29% drop in 7 weeks. What we can draw from this is that there is more interest, discussion, narrative surrounding the "Alt Market" or altcoins, which means there is more investment interest, upward price pressure for newer, cutting-edge, innovations such as the layer 2s and layer 3s. Of course, within these are all the above hash-tagged words.
Caveat or forewarning: The "woke" of the world understand and realize that as long as there's this Modern Monetary Theory narrative within the Traditional Financial System, that there will also be the continued mainstream media blast of the lingering Black Swan in practical lock-step. The two are like sweet and sour...it doesn't seem right, but they taste good to each other.
In 2022, the U.S.A. will see many, many more $Trillions pumped into its economy, so this will continue to be a factor of significant overall economic consideration.
So going into 2022, we will do well to continue to consider the depressive effects of this lingering Black Swan Event, the telling on-chain metric of the lowering of Bitcoin's market dominance and the likelihood that this will continue to lose market share to the innovative and cutting-edge excitement of Layer 2 and Layer 3 developments within the metaverse, NFT, gaming, p2e and smart contract markets and others, and the veritable certainty of the insanity of continued MMT.
Please feel free to leave a comment about what your New Year's Resolution is. Mine is that i will do more videos on longevity and disciplines for improving and maintaining physical health.
i wish you well, i wish you wealth, i wish you health, and until next time, Peace!!!