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One of China’s biggest miners expects BTC bull run to end in 2022

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One of the biggest China-based BTC miners says the BTC market would move ahead with full steam and see a slowdown only in June 2022, as per local sources.

Miner caution

Wu Colin, a journalist focused exclusively on China who goes by Wu Blockchain, said in a tweet yesterday that Jiang Zhuoer, the CEO of BTC mining firm BTC.TOP, cited data models to predict that June 2022 will turn “from a bull to a bear market.”

Colin added that local mining firms had previously stated that September 2021 could see the market become more bearish. The miners cited economic recovery after the rollout of the coronavirus vaccine and the beginning of a shift in US monetary policy as the two catalysts for a bearish move, Colin said.

What changed? The presence of institutional capital in the crypto market, said Colin. “There are also opinions that if more traditional large institutions buy BTC and ETH, the bull market may continue for a longer period of time or even the next round of halving,” he tweeted.

Zhuoer’s comments come on the back of both technology firms and institutional banks moving into the crypto space. The asset, for the former, is one that serves as a macro ‘hedge’ amidst a bleak economic environment, while for the latter, it’s arguably no more than a source of new and more income.

An institutional rush for BTC

The past six months saw an influx of institutional funds into crypto at previously unseen levels. Business analytics firm MicroStrategy picked up over $1.9 billion worth of BTC over several instances—even raising funds via a convertible note to fuel its purchasing frenzy.

Payments technology firm Square picked up $50 million in BTC in October 2020, before following it with a $170 million purchase of more BTC in February 2021. Elsewhere in China, Hong Kong-listed photo app Meitu picked up over $50 million worth of BTC and ETH, becoming the first Far Eastern public company to do so.

There was then the landmark $1.5 billion purchase of BTC by electric carmaker Tesla last month. CEO Elon Musk was continually tweeting about the asset (and Dogecoin) in the weeks just before the purchase was made public, meaning the move wasn’t a big surprise for some.

Big banks are now in the game as well. JPMorgan said it is now developing new crypto products for clients, Goldman Sachs said it would restart its famed BTC trading desk, while Morgan Stanley said it would launch new BTC ETFs targeted towards US investors.

But the euphoria aside, the bear market is likely to happen when everyone’s least expecting.

The post One of China’s biggest miners expects BTC bull run to end in 2022 appeared first on CryptoSlate.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.
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