How Low Will Bitcoin Go? Experts Say Bitcoin Could Reach $100,000 in 2022
For Bitcoin, the start of this year has been very difficult, How low will it go? Experts still say that it will reach $100000 – and it is more a matter of time than whether it will.
On Wednesday, Bitcoin remained above $20000, but its trading volume was lower than at the beginning of this week. The largest cryptocurrency has struggled back from the sharp fall over the weekend, falling below US $18000, a new low since December 2020.
Sharp Decline in the Crypto Market
Edward Moya, senior market analyst at OANDA, said that the recent sharp decline in the cryptocurrency market was stimulated by the de risking moment of Wall Street, because many investors were pessimistic about the economy under the circumstances of soaring inflation, stock market volatility and rising interest rates. In recent months, the cryptocurrency market has increasingly tracked the stock market, which makes it more intertwined with global economic factors.
In addition to macroeconomic factors, Moya said that investors are worried that the problems of major cryptocurrency players may release broader market shocks. Three Arrows Capital , a crypto hedge fund, is considering selling its assets and being rescued by another company, while Celsius, a crypto currency, announced this month that it would halt customer withdrawals.
“Soaring borrowing costs, margin calls and excessive leverage speculation have helped accelerate the selling pressure over the past two weeks,” Moya said. “Cryptocurrency will not disappear, and some investors are beginning to believe that further downward space may be limited.”
Worries about the Further Fluctuations
Experts say that since there is no end in sight, the war, inflation and changes in monetary policy in the United States may continue to drive more fluctuations in the coming weeks and months.
In the past six months, Bitcoin has only briefly exceeded $45000 for several times, and has not exceeded $50000 since December25, 2021. With ups and downs, Bitcoin’s current price is far from its latest record high in November, when it exceeded $68000. But even with the recent price drop, Bitcoin is still more than twice as valuable as it was a few years ago. For Bitcoin, this fluctuation is not new.
Despite fluctuations and recent price declines, many experts still say that Bitcoin is moving towards breaking the $100,000 mark, although there are different views on the specific time. A recent study by Deutsche Bank found that about a quarter of Bitcoin investors think that the price of Bitcoin will exceed $110,000 within five years.
This volatility is nothing new, and it is also an important reason why experts say that new cryptocurrency investors should be very cautious when allocating part of their portfolio to cryptocurrency. Over the years, Bitcoin, like other cryptocurrencies on the market, has shown a steady rise in value. It is reasonable for Bitcoin investors to be curious about how high it will eventually rise.
Unfortunately, the price of Bitcoin is extremely difficult to predict, and even more vulnerable to market factors than more mature asset classes. But we decided to ask some experts for their best guess. Here’s what they said.
Bitcoin Price Forecast
At the end of last year, it was easy to predict the Bitcoin price of $100,000 from the latest historical high in November. As Bitcoin plummeted since then, the prediction game has become more difficult.
The most extreme cryptocurrency skeptics say that Bitcoin will be as low as US $10,000 in 2022, but a middle ground may be that cryptocurrency can still climb to US $100000 as many experts predicted at the end of last year — but the time will be slower.
“The most knowledgeable educator in this field predicts that Bitcoin will reach US $100,000 in the first quarter of 2022 or earlier,” Kate Waltman, a New York CPA specializing in cryptocurrency, told us in November 2021.
But now, bullish experts are reassessing the entire cryptocurrency industry, because big companies like Nike and other big brands are studying how to monetize their products in the digital universe. The rise of metaverse games, worlds, products and experiences is increasing the popularity of alternative currencies, which has changed the sentiment of investors in Bitcoin (known as the original cryptocurrency).
Many experts hesitate to predict a number and a date, but point out the trend that Bitcoin continues to increase in value over time. Jurrien Timmer, global macro director of Fidelity Investment Company, predicted in October last year that investors should expect the long-term value of Bitcoin to rise “quite sustainably” driven by the organic market movement, and the threshold of $100,000 is close at hand.
Kiana Danial, the founder of invest Diva and the author of fool’s cryptocurrency investment, said:” my expectations for Bitcoin are short-term fluctuations and long-term growth. ”
Investors Need to Know About Bitcoin Price
As with any investment, other experts advise against letting the price fluctuation of Bitcoin cause you to make emotional decisions. Research shows that investors who regularly contribute to passive index funds and ETFs perform better over time, thanks to a strategy called the dollar cost averaging method.
This is why experts recommend that you invest no more than 5% of your overall portfolio in cryptocurrencies and never invest at the expense of saving for emergencies and paying off high interest debt. For people with diversified investments such as low-cost index funds, the path to long-term wealth and saving for retirement is often successful, while cryptocurrency accounts for only a small part.
And even for cryptocurrencies, experts say it makes sense to forget about them once they are set. “Passive investment is a very effective way to achieve financial goals,” said Sarah Catherine Gutierrez, a registered financial planner in Arkansas.
Since cryptocurrency is still a new thing for most people, it is OK to wait and see what happens before putting your money into it. We only have about 10 years of data to provide a reference for the price forecast of cryptocurrency, and the value of Bitcoin — although it may rise for a long time — fluctuates very much every day.
Volatility makes it difficult to know what and why behind your cryptocurrency strategy. Before investing in Bitcoin or any alternative asset, ask yourself what you want from participating in this particularly volatile market and why. This will help you stay focused.
“I don’t think people fully understand how to evaluate Bitcoin,” Guterres said. “When you buy it, you need to know your expectations, that is, what value you will get from what you buy.”
Gutierrez said that financial planners have no prejudice against cryptocurrency, especially if customers express interest in learning about it. However, you should ask yourself if you need cryptocurrency as part of your plan. Gutierrez said that in most cases, the answer is No.
“Our view is that we don’t think you need Bitcoin to achieve your financial goals,” she said, adding that ordinary people should prefer simple investment methods that are easy to understand. This will keep you on track of your core financial goals and better position you for a healthy retirement in the long term.