3 Main things that could ignite a massive crypto bull market in 2022 ( DXY Decline / Bitcoin ETF approval / Ethereum 2.0 upgrade in September )
- US Federal reserve will start selling off its balance sheet at the pace of 1 Trillion US Dollars a year ! ( that is 1,000 Billion dollars flooding into the markets ! ) This will be very negative for the US Dollar and starting in June 6/22 when this starts to take place, we expect heavy declines in the DXY and US Dollar.
- As you can see in the chart here there is a direct relationship to the DXY ( Dollar index ) and Bitcoin / Crypto bull markets.
The US has weaponized the US Dollar and many countries have taken notice. Russia has been building out its own international payment system. Russia plans to use US sanctions to get other countries around the world to abandon the US Dollar and connect onto the new payment system being built by Russia / China / India / Brazil. This is almost 40% of the worlds population now moving away from the Global reserve currency and into the payment system being built by Russia and China ! The US and Europe have no real strategy on this and have fallen into a trap of their own creation. Russia is playing the long game and US Sanctions will harm the US dollars global reserve status far more than short term Russian sanctions will harm Russia. Long term this is very bad for the US Dollar and its global reserve status. We expect new all time lows for the US Dollar some time during the next US Financial crisis which is not far away. ( Within the next 5 years or less )
2) Grayscale BITCON Fund is expecting to get an answer on its approval to convert to a Bitcoin ETF. This would be the first US Spot Bitcoin ETF. If this is approved, then this will bring in massive amounts of capital into crypto and Bitcoin. A real bull run can really get going if the ETF is approved in July. If this happens and the US dollar is doing down, crypto prices will really pump ! If the SEC does not approve the bitcoin ETF, Grayscale is going to sue and take the SEC to court and have a judge decide the law and approve it. All evidence indicates Grayscale has the law on their side and that the SEC is resisting and it is in the way of the law.
At the same time a possible bitcoin ETF could come and a sharp decline in the US Dollar. Ethereum is going to upgrade ! This is shaping up to be a perfect storm for a bull market in crypto. Targets for Ethereum if it can breakout of its price channel are at $13,400 as some analyst have shown and Bitcoin over $100,000!
Many crypto analysts have called for a blowoff top before a crypto winter begins. A crypto winder is a multi month or year long down trends in crypto. If a recession hit the US in 2023 or 2024, this will be very negative for all assets including crypto. A crypto winter would come if a major recession hit the US. If the final phase in the bull run can bring a blow off top as everyone is expecting, then this could bring a new crypto winter in 2023. This would also be around the same time a US recession is expected by some. For now things are shaping up for a perfect storm for a new crypto bull market in 2022. Hold on to your hats, money is going to be made and things are going to get wild.