Speaking to CNBC, Peter Johnson, who manages Jump Capital's crypto and fintech investment arm, said that there should be no worries about the drop. Johnson claimed that despite this decline, 2022 will be a good year for Bitcoin. According to Peter Johnson, there seem to be many reasons that will increase the price of Bitcoin in 2022.

Johnson stated that the current volatility in the leading cryptocurrency is due to Bitcoin's speculative nature and being a risky asset. Stating that the long-term rise for Bitcoin is still continuing, Johnson stated that the crypto money market is just preparing for a big fluctuation.

Cnbc Johnson

   “Looking further at the issue, I think what really matters is what we set ourselves up for this year. I think there will be a lot of positive catalysts for Bitcoin and crypto this year.”

The first catalyst Johnson mentions for Bitcoin is the view of Bitcoin and the cryptocurrency market as a hedge in the face of rising inflation. Johnson thinks that as inflation rises, many investors will enter the cryptocurrency market to protect their wealth.

Noting that there is a large amount of capital preparing to enter the crypto market, Johnson believes that many hedge funds will enter the crypto money market.

crypto selloff

   “There are billions of dollars being raised to be distributed in crypto. Hedge funds are increasingly spreading into space.”

The final catalyst that Peter Johnson mentions is that the crypto industry is attracting very talented people. According to Johnson, the smartest people in the world are getting involved in the world of crypto money with many new initiatives.

   “The smartest people in the world are building crypto these days”

Johnson predicts that these factors will play a key role in generating positive developments in the crypto market in 2022.