If financial analysts already see BTC hitting 100K in 2022, what does the future hold for this digital currency? What can you do to get ahead of the curve? We’re looking for answers in this Bitcoin price prediction.
As the first and most valuable digital asset with an unprecedented market cap of $800 billion, Bitcoin reigns supreme as the queen of all cryptocurrencies. Given the fact BTC is here to transform the world beyond the financial sector, many believe that it will soon hit $100,000 and beyond.
When it traded at just over $1,000 five years ago, who could have thought Bitcoin could grow 70 times in under four years?
This cryptocurrency has broken one price record after another in recent history. Even in the face of adversity, it seems unstoppable. But where will Bitcoin find itself five years from now?
BTC has performed feats no other cryptocurrency can boast of. For instance, its market capitalization reached an all-time maximum of $1.27 trillion in November 2021.
Finance expert and editor of FIN James Ledbetter recently stated that he sees Bitcoin continuing its bullish trend in the future. Similarly, Bill Barhydt from Abra, a popular crypto exchange, predicted its cost might reach $100,000 in 2022.
Bitcoin’s reputation and its future prospects remain strong. What’s more, we haven’t even seen the boom of the crypto market yet. If you take too long to invest in Bitcoin, the window of opportunity might just slip away.
What Recent News and Events Are Affecting BTC and Its Prices?
According to a survey by Kevin Wang from Crypto.com, the number of people owning bitcoins more than doubled in 2021. There were at least 221 million people around the globe holding this crypto in December. This growth reflects the increasing demand for it among the general population.
Nevertheless, there have been a few challenges for Bitcoin miners recently, negatively affecting the crypto’s price. These issues stem from political news in China and Kazakhstan.
First off, China used to be home to the biggest Bitcoin mining centres. That explains why Bitcoin took a hit when the Chinese government banned all cryptocurrencies in 2021.
With the pushback against crypto in China, miners needed to find a new home for their operation — Kazakhstan. However, this country is also not an option at the moment. Due to civil unrest, Kazakhstan has experienced a nationwide Internet shutdown and other restrictions. This situation has made mining bitcoins virtually impossible there.
Note that while mining has since resumed, the uncertainty in Kazakhstan remains a downside factor. In case of a resurgence of Internet connection problems, analysts believe Bitcoin prices will go down.
Thus, recent events have not permitted Bitcoin prices to rise by much. However, due to this crypto’s popularity, miners expect to find solutions in the future. In other words, these events may have an impact only in the short term.
Technical Analysis and Bitcoin Price Prediction
Though Bitcoin has been around since 2009, its most impressive achievements came in the past two years. As you can see in the price chart below, it made significant gains in 2020 and 2021. It seems that the Covid-19 pandemic only accelerated the bullish trend already forming.
The past two years were a bit of a mixed bag. On the one hand, Bitcoin prices spiked close to $70,000, a level that no other crypto has ever come close to.
On the other hand, there were multiple plot twists in this crypto’s journey. Bitcoin prices suffered some painful drops in 2020-2021. For instance, BTC is worth about $42K at the time of this article’s composition.
This value represents a 38% loss compared to the November 2021 Bitcoin price peak of nearly $70,000. Its market cap also retreated to $800 billion as a result.
Yet, despite these challenges, Bitcoin is still trading at more than double its pre-pandemic price.
What will the Bitcoin Price be in 2022?
Even though Bitcoin started 2022 below the all-time high it reached in late 2021, the expectation is this cryptocurrency will stabilise and continue its climb upward in the future.
Many are eyeing $100,000 as the most crucial goal for BTC in 2022. Still, it remains to be seen if the cryptocurrency can reach that milestone.
US bank JPMorgan conducted a survey among its clients, which found that 55% of them expected BTC to be worth $60,000 or more in 2022. Only 5% of the bank’s customers saw the coin surpassing $100,000. Nevertheless, even the most conservative attitudes might change if it gathers momentum.
Considering that Bitcoin reached new highs in both 2020 and 2021, it is not a far stretch to expect it to surpass the 2021 peak this year. With $70,000 being the highest level in 2021, $80,000 seems like a realistic goal for BTC in 2022.
Another American bank, Goldman Sachs, has suggested that if more people use Bitcoin as a ‘store of value,’ it could easily reach $100,000. Goldman Sachs expects that fiat money and other assets used this way, especially gold, will lose popularity. Bitcoin is slowly increasing its market share, stealing positions from the precious metal. For this reason, BTC is sometimes called ‘digital gold.’
At this rate, Goldman Sachs sees Bitcoin surpassing $100,000 in the coming years. Note that its Bitcoin price prediction does not consider other factors, such as inflation and Federal Reserve policies.
Bitcoin Price Prediction for the Next Five Years (2022-2027)
Over the last five years, Bitcoin has grown by 4,700%. That begs the question — will the cryptocurrency perform equally well by 2027?
It isn’t easy to answer that question and make an accurate Bitcoin price prediction. Things will depend on how the following issues play out:
- The pandemic: Covid-19 has led to a global economic crisis, which affects the entire financial sector. The end of the pandemic may inspire massive demand for risk assets, boosting cryptocurrencies.
- Climate change: Bitcoin’s reputation will improve if miners reduce their carbon footprint by switching to green energy sources.
- Adoption rate: if more countries and businesses back BTC, its price will increase.
- Famous endorsements: Tesla CEO Elon Musk is known for investing in Bitcoin. There are also rumours of other celebrities such as Bill Gates and Kanye West showing an interest. However, we have not confirmed if they genuinely support any crypto coin.
Thus, it’s crucial to follow the news and understand the situation in the global economy.
Bitcoin Price Expert Forecasts
Billionaire Tyler Winklevoss predicts Bitcoin will reach $500,000 by 2030.
Venture capital investor Tim Draper expects the cryptocurrency to reach $250,000 by 2023 at the latest.
Coin Bureau see prices rising further on the wider adoption of Bitcoin. They predict that Paraguay and Panama might be the next two countries to make this crypto legal tender in 2022.
Fortune magazine supports the view that Bitcoin will reach $100,000 in 2022 and move higher afterwards.
Goldman Sachs sees the Bitcoin market cap surpassing $1.5 trillion and the coin value moving above $100,000 in the next five years.
And while Bitcoin’s future seems bright, do not forget that no price prediction should be considered investment advice.
Bitcoin Basics: Everything Worth Knowing
What Is Bitcoin?
Bitcoin is the world’s first cryptocurrency. A person or collective under the nickname Satoshi Nakamoto invented it in 2008. Bitcoin is unregulated: no central bank or institution has authority over it.
Bitcoin works on the principle of a digital ledger and uses blockchain technology. Essentially, every computer part of its network keeps encrypted data about all transactions. Computers in the network verify this information, which is known as ‘mining.’
The platform rewards verification with Bitcoin ownership. In other words, the person chosen to complete the verification gets a bitcoin in their e-wallet. Devices with more processing power go through more transactions and verify the ledger more frequently.
All of the information in the ledger is encrypted. Thus, Bitcoin allows for complete anonymity. For that reason, it has had issues with being used for illegal transactions in the past.
There are also environmental concerns when mining bitcoins due to the high energy consumption.
As of the composition of this article, Bitcoin is the only crypto coin in the world officially adopted as a national currency. The country that did so was El Salvador, with the adoption happening in the fall of 2021.
Though many developed economies have been cautious about Bitcoin and other cryptocurrencies, the fact that some nations have or are willing to adopt BTC suggests that public opinion can change. It is impossible to know what the future holds exactly, but if more countries accept Bitcoin as legal tender, others will likely hop on this trend.
But even in places where BTC is not widely accepted as a payment method, it has vast applications online. Brokers and select businesses around the globe have opted to receive payments in bitcoins. Based on how and where you shop, there may be a possibility to pay in BTC already.
Last but not least, Bitcoin has value as a long-term investment as well. With the crypto sector evolving so quickly, the adoption rate of altcoins will only improve in time. This process will ensure that the overall trend for BTC is to move up. Thus, some crypto investors prefer to buy it now to sell it when it gains in price in the future.
Where Is Bitcoin Traded?
You can trade BTC on both centralised and decentralised exchanges. These include services like Coinbase, Bisq, brokers like eToro, etc. The list of companies that offer ways to trade Bitcoin increases every day.
In addition, though Bitcoin itself is not traded on traditional exchanges like Wall Street, there is more and more talk of its derivatives (such as Bitcoin ETFs and options) eventually becoming available on the stock market. For example, in 2021, SEC approved a Bitcoin-based ETF, the first of its kind in the United States.
Frequently Asked Questions
Will Bitcoin Price Go Up?
Though nothing is certain in the financial markets, Bitcoin has exhibited a long-term bullish trend so far.
What Will Bitcoin Price Be in 2022?
Not everyone agrees on this number. The forecasts vary from a pessimistic $30,000 to perhaps an overly optimistic $300,000. The most common target mentioned by investors for 2022 appears to be $100,000.
Based on its past performance, Bitcoin has earned the trust of many investors. They expect the crypto space to keep expanding further and see bitcoins increasingly replacing gold as a store of value. As long as that trend holds up, Bitcoin can be a good investment opportunity.
Nevertheless, make sure to do your own thorough research if you are considering investing. Do not invest more money than you can afford to lose.
Investing in Bitcoin is safe as long as you work with a trustworthy exchange or broker and do not risk more capital than you are prepared to part with.
Please note that the information in this Bitcoin price prediction article aims to give you an overview of the current market situation with Bitcoin and how it might change in the future.
However, our findings are not formal investment advice. If you engage in financial trading, make sure to do your own in-depth research.
Be aware that the high volatility of cryptocurrencies that makes them so attractive to investors also means that the market can turn against you without prior warning. Never invest more money into risky financial assets than you can afford to lose.