Bitcoin Price Prediction 2022

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Bitcoin, the original cryptocurrency, is powered by blockchain technology, a method of generating and tracking digital assets. When Bitcoin is doing well, other cryptos are likely to do well too. When Bitcoin does poorly, other cryptos are likely to suffer as well. However, no one seems to agree on Bitcoin’s price going forward.

Why 2021 Was a Good Year for Bitcoin

In 2021, Bitcoin experienced a sharp rise in its market value. At the start of the year, a single coin was valued at $32,000, and by April that number had doubled. Traders were optimistic that wider adoption of Bitcoin by merchants and major banks would support the price.

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However, the promise surpassed reality – there was still no way to use Bitcoin for much of anything except speculative, high-risk trading. A decline in the stock market in late 2021 and a decline in highly valued growth stocks also weighed on cryptocurrencies. Bitcoin ended 2021 at about $47,300.

The risk-out-trade

Bitcoin’s price continued to fall in early 2022, as did the stock market. Investors turned to assets that are performing well at a time of a slowing economy, higher inflation and rising interest rates.

Since cryptocurrency is still widely seen as a risky, speculative asset, this “risk-off” trade brought Bitcoin down to about $36,000 at the end of February 2022. This represents a loss of nearly half the value Bitcoin reached at its November 2021 high of $69,000, though has seen some recovery in late March 2022, at around $47,345.

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 arguably the most optimistic of all analysts about Bitcoin. Breedlove predicts a price of $12.5 million by 203, and sees the main cause of this run-up as high inflation. With fiat currency losing its value, investors can turn to what they see as a safer haven in digital money.

Expanding the use of investments and payments

Nevertheless, as more businesses use Bitcoin as a payment method, its value should stabilize. Tesla, the first major company to accept Bitcoin, was later joined by other companies, including Microsoft, AT&T, Starbucks, PayPal and Amazon.

Moreover, as more platforms make room for Bitcoin trading, the market should expand among individual traders and investors. While Robinhood, Coinbase, and Kraken all allow the purchase of crypto, major brokers such as Schwab, Fidelity, and TD Ameritrade offer their clients access to the crypto market. These companies offer trading of coin trusts and ETFs, exchange traded mutual funds that hold crypto assets.

What is the future of Bitcoin? Whales dive in

The future price of Bitcoin depends on whether digital currencies can serve as useful financial assets. There was little support for this concept among financial newsmakers in the early years, but a number of once skeptical major investors have emerged.

Buffet and others now believers

Warren Buffett, whose Berkshire Hathaway company has rewarded investors with huge returns for decades, once described cryptocurrency as “rat poison squared” and vowed never to touch it. But by buying NuBank, a digital “neobank” involved in the crypto space, Buffet has given Bitcoin a second-hand vote of confidence.

Lloyd Blankfein, former chairman of Goldman Sachs, has announced that he is “evolving” on Bitcoin and other cryptocurrencies. Twitter founder Jack Dorsey resigned as CEO of that company to lead Block, a payment processing leader now developing new digital currency applications.

The endorsement by these and other business leaders should support a reversal in Bitcoin and higher value by the end of 2022.

What is Bitcoin worth in 2023? Educated Guesses

Several Bitcoin experts are optimistic about future price trends. In October 2021, Jurrien Timmer, a director of Fidelity Investments, gave a price prediction for Bitcoin of $100,000 in 2023. Financial news service Bloomberg predicts a Bitcoin price of $400,000, and mega bank JP Morgan, which has developed its own cryptocurrency for its customers. , marks Bitcoin at $146,000 in the long run.

Ian Balina is the founder of Token Metrics, a crypto research firm. Balina sees Bitcoin in a downward spiral due to investors’ general pessimism about risky assets, but he also sees a benefit from the development of Web 3, a new blockchain-based internet.

More practical applications of Bitcoin and cryptocurrencies are coming online. When trading isn’t the only thing you can do with it – with the exception of some digital shopping options – the value of these new assets should increase.

The information is correct as of March 30, 2022.

About the author

Tom Streissguth, a writer and editor with more than 100 book credits in youth and young adult nonfiction, masters the craft of explaining complex, difficult topics clearly. His books cover history, geography, economics, media and current affairs; he has also written biographies of historical figures for Lerner, Enslow, Facts on File, Greenhaven, and other major educational publishers.

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