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Currently, Bitcoin bears more resemblance to digital gold than any other digital currency. Its congested pending transaction logs render its practical applications in the real world scenario. The rise of Bitcoin is majorly due to its uniqueness in nature, for being the first-ever digital currency, and also due to massive media coverage. BTC has been dominating both crypto and mainstream news, and even after its mad volatility, it has broken new all-time highs repeatedly since its inception. The crypto has shown an active price rise, and also managed to survive global economic crises and proved its value to the crypto investors. But as experts like to call it, sometimes Bitcoin gets its own 'bubble'. Back in 2021, the crypto was up by over US$65,000, but this success was quite short-lived when the market crashed and the coin entered its crypto winter phase. The Bitcoin price value fell below US$50,000. This is when experts monitored that investors had already started looking for alternate options, leading to a fall in BTC's market dominance.
Nevertheless, analysts have predicted that this Bitcoin dive will not mean its downfall. Some of them think that Bitcoin is already one of the top cryptocurrencies and there is no way it will lose its market dominance so easily. Crypto experts think that its highest price value in early November 2021 was not the market top because they noticed that the Bitcoin cycle is getting longer. Even though there is no guarantee that Bitcoin will get its market top in 2022, we can still witness that its price value is gradually rising. The crypto's rise in February 2022 demonstrates a turning point for its market dominance. Crypto professionals believe that it showcases a cumulative Netflow with more Bitcoins flowing out of exchanges within a certain period of time. It signals increased buying demand over the last month due to which the coin's price value followed suit over the last few days.
According to coinmarketcap, the current price value of Bitcoin, at the time of writing this article is US$43,780.63, indicating a rise of 0.63% in the last 24 hours. It has been a tradition for Bitcoin to move in 4-year cycles. These cycles are generally predicted based on Bitcoin halving events. And the last two cycles in 2013 and 2017 ended in parabolic rallies, it is also expected that the same will happen by the end of 2022. The year-end rally in 2021 did not end properly, and analysts have monitored that Bitcoin cycles are extending, but there are still speculations that by the end of 2022, it will witness similar price rallies like the previous ones.
Furthermore, people are mostly alerted by the growing indications of possible inflation in the coming days. Even though this will vary from nation to nation, global inflation in the economic and financial markets has a long-standing impact on the monetary conditions of the country's citizens. Inflation is especially getting high in Europe and the USA. The respective central banks in the countries have already been lowering key interest rates for years and printing more and more paper money. It is being prophesized that in 2022, this inflation could lead to more and more small businesses and retail investors pouring their money into crypto assets since it is one of the safest means to store value. Eventually, this increases the likelihood of a massive price rally as mentioned above.
Well-known crypto strategists and analysts have predicted that Bitcoin will definitely regain its bullish momentum and soar above 80% this year. BTC will survive the recent storm and is gaining momentum. But while some countries are embracing major cryptocurrencies like Bitcoin, other countries like India have rejected such currencies to launch their own digital version of the rupee.
The answer to this question will differ for many. The rise of Bitcoin is still at its early stage, so it will be difficult to predict if investing in Bitcoin today will be absolutely safe or not. For investors who are willing to risk their money and for those who can handle risks quite well, it will be easy to manage or face a loss if Bitcoin suddenly dives again. But for those who like to play it safe, investing in Bitcoin right now will be their last choice. The financial and economic markets should recover very well in 2022. The forecasts for this year have been excellent for the stock markets, after the crisis year in 2020. This should also benefit the course of Bitcoin growth. Therefore, a good financial market should also massively benefit the Bitcoin price.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
