It’s been a tragic 6 months for Bitcoin, but experts still say it will hit US$100,000 soon or later.
Cryptocurrency as an asset class has flourished immensely since its inception. Bitcoin has been around since 2009, and it’s had a roller-coaster ride. Some think that its price will continue to rise no matter how bad the current situation is, while others believe that its bubble is about to burst. Digital assets are being adopted on a worldwide basis due to the various benefits and advantages that it provides. Cryptocurrencies are also a passive form of income for thousands of individuals in the investment sector. But a lesser-known fact about digital assets is that the domain is quite closely related to inflation and recession. It’s been a tragic 6 months for Bitcoin, but experts still say it will hit US$100,000 sooner or later. Investors are wrestling with concerns over rising inflation, geopolitical tensions, and the possibility of tighter monetary policy by the U.S. Federal Reserve. The crypto market has increasingly tracked the stock market in recent months, which makes it even more intertwined with global economic factors.
Following the end of June, which turned out to be bitcoin’s worst trading month in over a decade, the cryptocurrency experienced enhanced volatility by surging from over US$2,000 in minutes to a multi-day high of just under US$21,000. However, this uptick didn’t last long, and the asset returned below US$20,000 shortly after. Then came the typically calm weekend, and Bitcoin settled at approximately US$19,000.
Why is Bitcoin highly volatile?
There is a reason by Bitcoin is more volatile than the rest of the investment assets. Unlike traditional assets, most cryptocurrencies, including Bitcoin have no underlying asset. Their value does not depend on how well the business is performing, or how advanced the company’s innovations are. The value of Bitcoin will rise and fall, even if investors would not like that. This indicates that the performance of the crypto is purely dependent on speculation about how the investors think the market will perform. As a result of this feature, Bitcoin has faced wild swings, even within a short span of 24 hours. Several other incidents cause the Bitcoin price to dive.
Predictions for 2023 and 2024
If everything goes the way it is predicted, BTC will start in 2023 with a price of US$50,000. The predictions also show that the cost of the coin will reach almost US$65,000 by the end of the year’s second quarter. Furthermore, it is expected that BTC will finish in 2023 with a price of US$79,538. The increase of almost 93% in the value (compared to 2022) shows that if the growing trend continues, BTC will be able to reach the predicted price of US$126,127 by the end of 2025.
If the BTC has a successful 2023, it should start in 2024 at US$79,538 and only continue to grow from there. It is expected that the mid-year value of BTC will reach US$87,354, so a single coin should be worth over US$100,000 by the end of 2024. This would be a huge growth compared to the value of BTC in 2022.
Bitcoin is Positive for a Future Surge
BTC’s upward trend continued through the entire week, nevertheless, investors are hawkish about its market movements. The coin is trending in recent weeks, but the current surge might also be the result of the Biden government’s executive order initiating methods to enhance crypto adoption. But as crypto analysts continue to expect a massive Bitcoin price hike shortly, key indicators have spoken up. They predict that if Bitcoin fails to break the US$47,000, it might again dive back into a crypto slumber and would eventually, and finally, lose its market dominance.
As more companies continue to adopt BTC as a method of payment, its value is expected to stabilize. With this expanded room for Bitcoin trading, the market scope is increasing for investors and traders, and other governments, to explore the crypto domain for investments in the long run.
Bottom line
For now, Bitcoin is set for upcoming surges. But the market is still volatile. A price hike does not bring stability to the market. Hence, before investing in Bitcoin, investors should make sure that they are ready for the volatility and mentally prepared to face losses.
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