Bitcoin Price Prediction: BTC Prices for 2022 and Beyond
Bitcoin (BTC) is a digital currency that utilizes the blockchain to transfer value electronically. The blockchain is decentralized and works without intermediaries. Bitcoin transactions sent between users are recorded on the blockchain which is immutable.
Bitcoin was the first cryptocurrency (crypto) to gain mainstream recognition. It was seen as an alternative to fiat currencies, which got many people interested to buy Bitcoin. From 2009, it catapulted to prominence and is currently renowned worldwide.
The coin has a market dominance of approximately 42.3%, with a market cap of about $775 billion. Bitcoin’s domination of the crypto market has waned in recent years in the face of increased competition from thousands of cryptos. Decentralized finance(DeFi), Metaverse, NFTs, and smart contract platforms(Ethereum, Solana, Cardano) have all contributed to Bitcoin’s reduced dominance.
In recent times, Bitcoin has experienced massive price fluctuations. In 2021, the price of BTC reached over $68,000, buoyed by institutional investors. Currently, the price is about $38,500. The Russia-Ukraine war, investor sentiment, supply, and demand are some of the reasons why prices are shifting daily.
Another reason the markets are currently testy is the anticipation of crypto regulations in the USA. However, Bitcoin has shown it can withstand the bull run, and traders globally have gained even more confidence in this coin. This and many other reasons have seen BTC impact the prices of other cryptos.
Despite all this, BTC continues to tower over other cryptos by far. To most crypto enthusiasts, BTC is a must-have. Since its launch, the coin has recorded a +28,000% return on investment.
In 2022, Bitcoin has seen highs of $47,000 in early January before plummeting to $33,000 in the same month. Some industry players like investment bank JP Morgan have predicted that the price of BTC will hit $150,000 in the long term. Let’s take a closer look at these forecasts, what typically influences prices, and much more.
Latest Bitcoin Price Predictions by Experts
Estimates put the number of Bitcoin owners at 106 million globally, with more investors streaming in daily. There were about 53 million BTC traders in 2021.
Many of these people use BTC for payment and store of value. However, a majority have stakes in Bitcoin and HODLING on for a good payday.
The question on every trader’s mind is whether prices will tumble further or rebound to the highs of last year. Many experts, finance insiders, and even CEOs have given their predictions about Bitcoin. Many are hopeful that BTC prices will continue to rise while still urging caution.
We base our predictions on data analysis and understanding of future market events while factoring in volatility. Here are our top four picks.
Digitalcoinprice sees the market as bearish for this month. The experts here believe the price will rebound and get above $50,000. They forecast BTC to exceed $54,000 for 2022.
Technewsleader base their forecasts on research and historical data analysis. The predictions here put BTC prices over $59,000 and the average price about $54,000.
Crypto predictions take a more bearish outlook for BTC. Predictions here set the minimum price at just above $31,000. The maximum prediction is somehow subdued at $46,875. The average for 2022 is predicted to settle at $37,500.
Longest also takes a bearish outlook at BTC prices. Unlike the other three sites above, experts here set the minimum price at $24,082 and a maximum of $44,713 from March 2022.
Nobody can predict with absolute certainty the prices of Bitcoin. Shifting dynamics and external influence make predictions hard to pin down.
If you would like to learn more, we created the following price predictions:
Bitcoin Price Drop Prediction
The price volatility of Bitcoin makes it susceptible to massive price drops. For instance, in the past 52 weeks, BTC has seen lows of $28,893 and highs of $68,789. Whether you are a seasoned investor or a newbie in BTC trading, it's prudent to expect and anticipate considerable price drops.
After the Chinese government banned crypto last year, prices tumbled by close to 6% in 24 hours. The start of the Russia-Ukraine invasion also saw the crypto slide and then rebound after a while. It's clear that negative news impacts the price of BTC prices adversely. This year, we might see the outcome of the Ripple vs. SEC lawsuit impact other crypto prices.
The Russia-Ukraine war may still affect prices negatively. Additionally, the US working on comprehensive regulations for the crypto industry may cast doubt on the BTC and drive bearish sentiments even further.
Although scheduled to happen in 2024, Bitcoin halving is known to cause market turmoil. It's associated with price booms and busts, and investors should watch out for it.
Some of the above factors may adversely affect BTC prices. We urge investors to always do fundamental market research and analysis before investing.
Long-Term Bitcoin Forecast
Bitcoin has been in existence for 12 years and data from this period sheds some light on the future prices. Although Bitcoin’s market share is reducing, it’s set to maintain its place as the leading crypto by market cap for the foreseeable future.
With retail traders, beginners, institutional investors, and even governments coveting BTC, the long-term price BTC prediction becomes somewhat difficult. Industry players, CEOs such as the head of Swiss bank all have a positive outlook for BTC in the long term. Many expect the price to hit over $100,000.
Predicting BTC’s price with absolute certainty is somewhat contentious. Prices may plummet to $1 under the weight of several factors or rise to over $500,000. Here are our long-term forecasts.
Monthly Bitcoin Price Forecast for 2022/2023
Although some Bitcoin bulls see prices reaching $100,000 by the end of the year, a majority of experts predict a subdued increase in prices for 2022.
Crypto industry insiders indicate that prices may get to a $54,000 and $59,000 ceiling for the year. This is because the perspective on crypto might be changing as more people start to treat it as a long-term investment and not a get-rich scheme
Here is a month-by-month price forecast, highlighting the possible low and high prices for 2022.
What Impacts Bitcoin Price?
Bitcoin prices have shifted negatively by 36% since November 2021. This is a testament to the volatility of BTC. The fluctuations result from different aspects and factors, including
Supply and Demand:
Even BTC works within the constraints of supply and demand. When demand outweighs the supply, a price rally results. The boom in 2021 is a result of increased demand from institutional investors across the US and even Europe.
BTC has a maximum supply pegged at 21 million coins. As such, the supply is not increasing and BTC has become the world’s leading digital currency. More and more merchants and brands are accepting BTC as a medium of payment while others are HODLING it as an investment option. This typically results in an increase in price.
There are many cryptos and tokens that come into the market on a daily basis. Among those, there are some which are viable and useful and pick investors’ interests.
In recent times, traders have concentrated on meme coins like Shiba Inu and Dogecoin which stole some focus from BTC. The Metaverse, NTFs, and Smart Contract tokens are all contributing to a slide in Bitcoin’s market dominance.
This is a really controversial area for most crypto enthusiasts. Most people worry about government interference considering the mistrust most people have of authorities and financial institutions.
Bitcoin prices tumbled following the Chinese ban on crypto-related activities in 2021, showing the effect government policies can have on prices. El Salvador recently accepted BTC as a legal tender, and Russia is also considering this. This increases the confidence the market has in this digital asset.
The US has crypto-related laws in the works, and it's expected to affect prices as well. Favorable policies will result in a price rally while the opposite will affect prices negatively. New policies greatly influence investment by institutional investment as well as the development of crypto derivative products.
Cost of Production:
The price of BTC is closely related to its cost of mining. Mining BTC involves solving complex mathematical problems that require lots of electrical power and infrastructure. The process, therefore, requires buying equipment and paying for electricity. Many miners may abandon mining if there are no profits or turn to mining other cryptos which are profitable.
Regulatory news, core development team news, protocol modifications, and security breaches are some of the news that affects BTC prices.
Traditional media and social media have played a vital role in sensitizing the masses about crypto, especially Bitcoin.
Bitcoin awareness is spread via media, including main news outlets, newspapers, and Radio. Celebrities have also pushed information about Bitcoin using their social media platforms. The increase in awareness of cryptos has led to an increase in the number of people buying Bitcoin.
Digitization of the Global Financial System:
Bitcoin is truly global and appreciated worldwide due to its decentralization. This means that no intermediaries can manipulate it. Many people, therefore, use it as a store of value to avoid government interference.
As an electronic payment solution, BTC has become a great solution for peer-to-peer transaction solutions. This eases cross-border payment for remittances.
Upcoming Bitcoin Events
Bitcoin got its main upgrade in 2021 November. The upgrade is called Taproot and involves implementing schnorr signatures. The blockchain is now expected to have even better privacy and be cost-efficient,
The upgrade also brought better scalability to the network. Going forward, developers will have an expanded toolset to continue to build and iterate apps on the blockchain.
2022 will see the continued adoption of this upgrade. No other technical upgrade is expected in the year. If rolled out successfully, the efficiency and scalability issue afflicting Bitcoin’s blockchain would finally be sorted. This would spur app development and usage, leading to an increase in prices.
Many Bitcoin meetups happen, but these barely have any influence on Bitcoin prices.
Bitcoin Historical Price Changes
Bitcoin was launched in 2009 and has experienced highs and lows. Let’s look at the coin’s price history since 2014.
Bitcoin Vs. Ethereum Price Prediction
Bitcoin and Ethereum(ETH) are two of the biggest crypto by market cap. However, both operate differently with Ethereum as a blockchain with extensive possibilities. Both have found their niches and are doing extremely well.
Bitcoin was the first coin to gain mainstream adoption, so it has the first movers advantage on Ethereum. On the other hand, Ethereum is rapidly gaining adoption due to its many use cases. Going forward, we expect prices of both BTC and ETH to increase though modestly, unlike in 2021.
BTC prices this year are likely to get to highs of $57,000 and lows of $36,492. Experts don’t expect the prices of Ethereum to break above $4,000. They see the average price settling around $3,751 for the year.
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Best Brokers to Buy Bitcoin
Bitcoin is listed on many crypto platforms, and settling on the best provider can be a daunting task. We’ve compiled a list of top Bitcoin brokers below for you to get a quick start.
Crypto assets are highly volatile and largely unregulated. There is no guarantee that any crypto asset will have at any time in the future certain value (if any) or market liquidity. Crypto assets are at risk of losing substantial (or all) value within a short time period.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Bitcoin Price Predictions
Apart from Bitcoin, there are other cryptocurrencies making moves in the market currently. See the price prediction and analysis by clicking the links below