Although Bitcoin had a bumpy year, analysts still believe it will ultimately reach $100,000; it’s more a question of when than if.
Despite the turbulence and recent price decline, many experts still believe that Bitcoin will eventually surpass the $100,000 threshold, but they have different predictions for when that will happen. Additionally, according to recent research by Deutsche Bank, roughly 25% of Bitcoin investors predict that in five years, the cryptocurrency price will exceed $110,000.
Since volatility is nothing new, novice cryptocurrency investors should exercise extreme caution when investing a portion of their portfolio in cryptocurrencies, according to some experts. Like every other cryptocurrency on the market, Bitcoin has steadily increased in value over time.
Investors in Bitcoin are only naturally to wonder how high it may rise.
Binance previously announced that it would buy one of its fastest-growing rivals in response to mounting concerns over how much cash FTX, one of the biggest cryptocurrency exchanges in the world, had on hand. However, they soon rejected this idea. This has significantly impacted the cryptocurrency market since Bitcoin’s price has now reached a two-year low. Before we continue, if you are interested in learning how to buy Binance coin instantly, visit CEX.IO.
For the first time since late 2020, the price of bitcoin has fallen below $17,000, it was close to $16,500. After a solid month of consistently low but rising prices for both Bitcoin and Ethereum, the crash occurs.
Besides the current meltdown, Bitcoin’s problems result from negative economic news over the past few months, negatively impacting market sentiment, particularly the most recent inflation figures. Although its price has dropped, Bitcoin has recently fared better than other assets such as equities, gold, the European Euro, the Japanese Yen, the Chinese Yuan, and the British pound.
Experts speculate that bitcoin’s recent resilience, compared to other assets over the past month, may be due to the token’s development as an excellent conduit for US dollars as other currencies falter, or it may be due to long-term crypto investors’ continued indifference to recent blows to the US economy. In any event, the price of Bitcoin has dropped more than 60% from the beginning of the year, but it has remained stable as the value of other assets has plummeted.
Some people question if cryptocurrency is exhibiting indicators that it will quit following the stock market because of the terrible stock performance compared to the relatively consistent crypto performance. That may still need to be the case, according to experts. Although there is already less of a link between stock and cryptocurrency values, analysts believe it will still take some time for a crypto to diverge.
Even if Bitcoin remains stable, it is still not out of the woods. Events that might change the year include:
The consequences of Russia’s invasion of Ukraine are still impacting the world.
According to Martin Hiesboeck, head of blockchain and crypto research at Uphold, “the market remains fragile, and on edge, not only from worries of additional crypto businesses going bankrupt but from the bad economic scenario we are now facing.” In other words, Bitcoin’s price is more influenced by Germany’s gas supply than by any other cryptocurrency-related news or indicator.
According to analysts, the conflict in Ukraine, inflation, and the country’s changing monetary policy will likely all contribute to more volatility in the coming months.
Despite the ups and downs, Bitcoin is still far from its most recent record high, which it acquired in November when it surpassed $68,000. Despite the current price decrease, Bitcoin is worth more than twice as much as it was only a few years ago. These price variations are nothing new for Bitcoin.
Unlike other well-established asset classes, Bitcoin prices are challenging to forecast and much more subject to market forces. However, we still decided to consult several experts for their best projections for 2022.
2022’s first half has been a terrible time for cryptocurrency and the stock market. Investors have shied away from hazardous investments due to the weakening economy, more significant inflation, and rising interest rates. According to Deutsche Bank research, Bitcoin might return to $28,000 by the end of the year, given that Wall Street is now in a bear market, and analysts anticipate it to continue for a few more months. By the end of 2022, according to a 53-expert panel cited by Finder, Bitcoin should cost at least $25,000.
According to one analyst, the lowest price of the year for Bitcoin has yet to be reached. Given that it has a history of correcting up to 85% during previous bear markets, crypto market researcher Wendy O anticipates a decline in Bitcoin to as low as $10,000. According to O, the largest cryptocurrency peaked in November 2021 at around $68,000. Thus an 85% correction would bring it down to about $10,000.
But it won’t be a straight shot down. O’s technical analysis indicates that Bitcoin has multiple resistance levels, so we’ll probably witness a wild upward reversal before it bottoms out this year.