Bitcoin Will Increase Experts Predict: Volatility is nothing new and is one of the main reasons experts say that new crypto investors should be cautious when investing any portion of their portfolio in cryptocurrencies. Bitcoin has shown a steady increase in value over the years, like any other cryptocurrency on the market. It stands to reason that Bitcoin investors would be curious about how far it might eventually go.
Unfortunately, Bitcoin’s price is tough to predict and is even more vulnerable to market factors than more established asset classes. But we still decided to ask some experts for their best estimates. It is what they said:
Bitcoin Price Predictions
It was easy to predict a bitcoin price of $100,000 late last year after hitting its previous all-time high in November. With bitcoin’s massive decline since then, the prediction game is even more complicated.
The most dangerous crypto sceptics say Bitcoin will fall to $10,000 in 2022, but a middle ground might say that the cryptocurrency can still rally to $100,000 as many experts predicted late last year, just on a slower timeframe. It is said Bitcoin Will increase Experts Predict.
“Industry-savvy educators predict $100,000 worth of Bitcoin in Q1 2022 or earlier,” New York-based CPA and crypto expert Kate Waltman said in November 2021.
Optimistic Pundits
But now optimistic pundits are completely reassessing the crypto industry as major corporations like Nike, and other big brands look for ways to monetize their wares in the digital Metaverse. The rise of Metaverse games, creations, products, and experiences. Increases altcoins’ popularity, which has changed investor sentiment towards Bitcoin (known as the original crypto).
Many experts hesitate to predict a number and date, instead citing Bitcoin’s tendency to appreciate over time. Investors should expect a “fairly sustained” rise in Bitcoin’s long-term value, driven by organic market movements. With $100,000 on the horizon. Predicted Fidelity Investments global macro head Jurrien Timmer last October.
“What I want from Bitcoin is [short-term] volatility and [long-term] growth,” says Kiana Danial, founder of Invest Diva and author of Crypto Investing For Dummies.
Why
Bitcoin is on a bearish sentiment cycle, but the broader crypto market and other crypto asset classes are not. The launch of new altcoins and the hype surrounding the Metaverse will continue to fuel demand for crypto, eventually leading to a recovery in Bitcoin. Bitcoin was the first crypto, but now others have surpassed it in innovation regarding what experts call “Web 3.” Also known as the new blockchain-based internet.
Matthew Hyland
- Viewpoint: Data Analyst and Technical Blockchain Analyst
- Prediction: Bitcoin could reach $100,000 in 2022
Why
The value of Bitcoin in January 2022 is the same as in January 2021, but there is new demand for altcoins that Bitcoin Will increase . There is also an ongoing trend of bitcoin supplies leaving major exchanges (presumably for safekeeping in offline crypto wallets). He later tweeted that a drop below $40,000 could result in a “free fall” in a Bitcoin bear market.
Robert Breedlove
Founder and CEO of digital asset marketing and consulting firm Parallax Digital
Forecast: $307,000 by October 2021 (now surpassed) and $12.5 million by 2031
Why
Post-COVID-19 pressures will fuel interest in crypto and push Bitcoin’s worth above previous estimates, Breedlove said in a meeting earlier this year. Known more as a philosopher among crypto enthusiasts. Breedlove often talks about the broader societal implications of crypto as a more transparent form of decentralized currency, but his price predictions are not accurate.
Major financial organizations have also made their forecasts. With JPMorgan forecasting a long-term high of $146,000 and Bloomberg forecasting a long-term high of $400,000 if the currency appreciates at rates comparable to the past.
Helpful Resources: Stock Archiving Guide
What Affects the Price of Bitcoin
Standard economic factors affect the price of cryptocurrency like any other currency or investment. Supply and demand, public opinion, news cycle, market events, scarcity, etc.
Additional factors affect Bitcoin’s value more than currency or average value as a new and developing asset. Here are some:
Defect
Only 18-19 million bitcoins are in circulation, and minting will stop at 21 million. Industry insiders consistently point to this built-in scarcity as a big part of cryptocurrency’s allure.
“There’s steady supply, but growing demand,” says Alexis Johnson, president of blockchain PR and events company Light Node Media.
Other experts point out that Bitcoin is valuable because people value it. “That’s why everyone buys. Because of the psychological aspect,” says Nelson Merchan, co-founder of Johnson’s Light Node Media. It can make it difficult for the average consumer to tell if Bitcoin and other cryptocurrencies are legitimate. The idea of supply and demand only works when people want something rare, even if it didn’t exist before.
“It almost looks like a scam,” Merchan says of Bitcoin’s origins. Though he says he’s seen his cryptocurrency holdings reach millions at times since they started investing in 2017. He’s also seen them vanish immediately.
“I have a strong belief that if it’s not cash, you don’t have that money because everything in crypto can fall dramatically overnight,” Merchan says. It is why certified financial planners suggest allocating only 1% to 5% of your portfolio to crypto to protect your money from volatility.
Broad Acceptance
One of the main factors driving the Bitcoin price surge is the speed at which new consumers are buying and exploring the cryptocurrency and Bitcoin Will increase.
“Crypto technology is being adopted faster than the first human-adopted Internet technology,” he says. Assuming this continues. The accelerating rate of new adoption could continue to drive Bitcoin’s value higher.
According to digital asset management company Coin Shares, Bitcoin adoption has grown by 113% annually. (During that time, people adopted the internet at a slower rate of 63%.). Suppose people are becoming familiar with bitcoin at a rate comparable to (or faster than) the early days of the internet. In that case, the report says there will be a billion users by 2024 and 4 billion users by 2030.
CoinDesk announced last month that the number of new wallets worldwide increased by 45% to around 66 million from January 2020 to January 2021. Popular cryptocurrency exchange Coinbase says it now has more than 73 million users worldwide. At the same time, Gemini recently released its State of US Cryptocurrency Report, revealing that 21.2 million Americans own some form of cryptocurrency.
Regulation
In recent months, federal officials have made sure that they pay attention to cryptocurrencies. Industry experts have recently hinted. That what crypto experts perceive as “tough” federal regulation is crucial for Bitcoin’s lagging price. In a recent interview with CoinDesk First Mover, CoinFund Managing Partner. Seth Ginns said that “the Fed went into an aggressive stance. when Omicron began to take action in the US,” raising the doubts crypto may have strengthened as a profitable asset—Bitcoin Will increase leading to bearish sentiment in January.
Crypto regulation raises many unanswered questions. President Joe Biden recently signed an infrastructure law requiring all cryptocurrency exchanges to report their transactions to the IRS. Similarly, Treasury Secretary Janet Yellen recently said that stable coins. A type of crypto pegged to the value of the US dollar, should be subject to federal oversight.
According to an industry whitepaper published by Flourish, a fintech platform for investment advisors, the discussion on regulatory policy is “uneven”. For a relatively new asset class like cryptocurrency, any new regulation can affect value.