Bitcoin Price Prediction 2022 | Nasdaq
Bitcoin, the original cryptocurrency, is made possible by blockchain technology, a method of generating and tracking digital assets and transaction processing. When bitcoin is doing well, other cryptocurrencies are likely to do well. When bitcoin does poorly, other cryptos are likely to suffer as well.
Nobody, however, seems to agree on the price of bitcoin going forward.
Why 2021 has been a good year for Bitcoin
In 2021, bitcoin saw a big increase in its market value. At the start of the year, a single coin was worth $32,000, and by April that number had doubled. Traders were optimistic that wider acceptance of bitcoin by merchants and major banks would support the price.
However, the promise exceeded the reality – there was still no way to use bitcoin for anything except speculative and risky transactions. A decline in the stock market at the end of 2021 and a fall in popular growth stocks also led to a decline in cryptocurrencies. Bitcoin ended 2021 at around $47,300. As of June 24, 2022, bitcoin was selling for $21,145.
The Bitcoin price continued to decline in the first half of 2022, as did the stock market. Investors turned to performing assets at a time of economic slowdown, rising inflation and rising interest rates.
As cryptocurrency is still widely considered a risky and speculative asset, this “risky” trade took bitcoin below $20,000 in mid-June. This represents a loss of more two-thirds of the value bitcoin reached during its November 2021 peak of $69,000, with no signs of a sustainable recovery in sight.
Concerns about high electricity consumption associated with bitcoin mining and China’s ban on cryptocurrency transactions also weighed on bitcoin’s value.
Good to know
Robert Breedlove, CEO of Parallax Digital, is perhaps the most bullish of all bitcoin analysts. In 2021, Breedlove predicted a price of $12.5 million by 2031, viewing high inflation as the main driver of this acceleration. Fiat currency loses its value, the thought goessome investors may turn to what they perceive as a safer haven in digital currency. However, it should be noted that Breedlove previously predicted that bitcoin would surpass $300,000 by October 2021 – a month that saw a high price of $65,993.
Expand investment and use of payments
However, as more businesses adopt bitcoin as a form of payment, its value could stabilize. Major companies that already accept bitcoin include Microsoft, AT&T, Starbucks, PayPal, and Amazon, although you have to jump through a hoops or two to pay this way.
Additionally, as more and more platforms make room for bitcoin trading, the market is expected to grow among individual traders and investors. While Coinbase, Kraken anand online investing companies like Robinhood and Webull all allow the purchase of cryptocurrency, the big traditional brokerages are just getting on board.
Goldman Sachs, for example, announced in April that it would give high net worth customers access to bitcoin and ethereum. Other brokerage firms, such as Schwab, Fidelity, and TD Ameritrade, simply allow their clients to gain exposure to the crypto market, although Fidelity allows firms to allow their employees to invest up to 20% of their 401(k) in bitcoin, NBC News reported. .
For the most part, however, these companies offer to trade coin trusts and exchange-traded funds that hold crypto assets.
What is the future of bitcoin? whales dive
The future price of bitcoin depends on the ability of digital currencies to serve as useful financial assets. There was little support for the concept among financial journalists in the early years, but some once skeptical mainstream investors have returned.
Buffet and others now believers
Warren Buffett, whose Berkshire Hathaway company has rewarded investors with huge returns over the decades, once described cryptocurrency as a “squared rat’s death,” and he swore there was no would never touch. But by buying NuBank, a digital “neobank” involved in the crypto space, Buffet gave bitcoin an indirect vote of confidence.
Lloyd Blankfein, former chairman of Goldman Sachs, has announced that he is “evolving” on bitcoin and other cryptocurrencies. Jack Dorsey, founder of Twitter, stepped down as that company’s CEO to lead Block, a payment processing leader that is developing new digital currency apps.
Adoption by them and other business leaders could sustain a reversal in bitcoin’s free fall and deliver greater value by the end of 2022.
What will Bitcoin be worth in 2022 and 2023? Educated Guesses
User-generated cryptocurrency price predictions on CoinMarketCap predict that bitcoin will hit $39,003 by June 30. For this to be the case, it would have to almost double its current value.
Looking further ahead, two expert groups recently weighed in on bitcoin price predictions for next year. A 35-member group reported by Forbes expects bitcoin to start the new year at around $76,000.
The second panel is less bullish. This, according to Forkast, has reduced an earlier target of $65,185 as 2022 draws to a close. Cryptocurrency exchange Changelly expects bitcoin prices to range between $53,039 and $64,734 in 2023, with an average target of $54,570.
Ian Balina, founder of crypto research firm Token Metrics, sees bitcoin in a bear cycle due to general investor pessimism about risky assets, but he also sees an upside in web development. 3.0, a new blockchain-based Internet. That said, bitcoin is an old-school cryptocurrency, which could give Web 3.0 coins like chainlink and polkadot a long-term advantage.
More practical uses of bitcoin and cryptocurrencies are online. When trading isn’t the only thing you can do with them – with the exception of some digital call options – the value of these new assets could increase.
While many experts predict a positive future for bitcoin, it is important to invest with caution. As the recent market has demonstrated, cryptocurrency is a volatile investment.
Daria Uhlig contributed reporting for this article.
Information is accurate as of June 24, 2022.
This article originally appeared on GOBankingRates.com: Bitcoin Price Prediction 2022
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