Home Cryptocurrency News Bitcoin Price Prediction

Bitcoin Price Prediction

765
Bitcoin

If you have ever made an investment in cryptocurrencies, you will know how hard it is to make a price prediction. However, Bitcoin had a good year last year as it managed to have a rise o up to 70% since the beginning of the year. This huge increase on its side drove the entire crypto currency market to a total value of $2 trillion.

Unfortunately, there are external factors that have caused a disruption in its performance lately. Some of these factors include intense price fluctuations and heightened regulatory scrutiny. These factors are affecting Bitcoin’s market value and experts are cautioning investors that Bitcoin may hit rock bottom if things do not resume normalcy. These coming years seem to be a little bit challenging for fiat currencies but that should not scare away investors from trading in them.

Bitcoin’s Possible Crash

Most experts are doing evaluation in the bid to try and analyse the price predictions of Bitcoin in 2022. Unlike in November 2021 where Bitcoin managed to have an increase of about $ 69,000, currently it is experiencing a drastic decline in its performance. It’s having $ 50,000 which is a 30% decrease in comparison to its peak last year.

For investors who are worried if Bitcoin will experience a crash like it almost did in 2017; you have nothing to worry about. This is because there are numerous changes in the market like for instance, there are various institutions that have interest in this digital space. Bitcoin is most likely to bounce back from all its challenges that it endured in the past years.

The involvement of platforms such as PayPal have opened crypto to a sphere of billions of retail investors and professional traders as well. PayPal and Square offer crypto products to their clients thus creating an entirely different market for fiat currencies.

Bitcoin’s Price Prediction in 2022

The market will face ups and downs this year because most cryptocurrencies are volatile but the ups will definitely outweigh the lows. At the beginning of the year Bitcoin is likely to have a bit of a struggle because of the huge backdrop in the economy due to COVID-19 and all the uncertainties that come with it.

Additionally, crypto prices have declined thus giving dip-buyers an insatiable urge of purchasing them at downbeat prices. Therefore, it becomes quite impossible to make an accurate prediction of the same.

It is also important to note that Bitcoin is the face of crypto to the entire world since it is the oldest and most popular crypto. Therefore, instead of focusing on its price one year out, it would be best to give it at least five to ten years out of performance.

Factors that Affect Bitcoin’s Volatility

Ever since Bitcoin made its first public appearance in 2009, it has always had a rise and fall o prices of thousands of dollars in a matter of days. It is therefore important to understand why Bitcoin has such a volatile price history and all the possible factors that influence its market price. Once a trader gets to understand all these, they can decide whether or not to invest in it. Here are some of the factors that greatly determine Bitcoin’s market price and performance:

Supply and Demand

The market value of this coin is highly dependent on the number of coins that are in circulation and the number of people that are willing to pay. The higher the supply of the coins, the higher the prices are likely to be.

Bitcoin In the News

Most media houses and news outlets will use unverified feedbacks rom “experts” who present information and predictions without evidence. It is highly unlikely to get information from a highly invested trader of Bitcoin claiming that its price will increase to hundreds of thousands.

Additionally, most media houses will create hype for new cryptocurrencies just so as to steal the market share from Bitcoin. However, the attention that media houses and news outlets create benefit Bitcoin in the process. All these make it easier for the price to skyrocket thus giving investors a chance of exposure to a crypto coin on an official exchange.

Conclusion

Even though Bitcoin is facing too many uncertainties, it is still safe to buy and trade in it. You should bear in mind that, just like most fiat currencies, investing in Bitcoin has its ups and downs and an investor should be prepared for both. Lastly, it is unknown how high or low Bitcoin’s price will get in the coming months and years.
For more information you can check from the following sources:

LEAVE A REPLY

Please enter your comment!
Please enter your name here