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Although bitcoin has attracted the attention of many investors since its inception, a high number of first-timers gave it a try only in 2021. The current year marks many remarkable stances in bitcoin's timeline. It reached an all-time high in a very short interval and also went down drastically in a matter of days, only to maintain a moderate value. However, price volatility is not a new thing in the cryptocurrency circle. Despite the constant oscillations, crypto investors are expecting a remarkable twist in the bitcoin price. Yes, I'm talking about the US$100k mark.
The last few weeks have been complicated for bitcoin investors. Many were worried about the downwards trend that kept them on the edge. Remarkably, not all are nervous about the falling bitcoin value. Many professional investors know that the cryptocurrency market is very volatile and such price dips will only bring more improvement and new record-breaking value to bitcoin. Based on open-source software, bitcoin has no central authority or central bank managing the system. This is the big reason for its constant price swings. After cryptocurrency reached an all-time high of US$65,000 in mid-April this year, many crypto investors changed their investment strategy and tried their hand at bitcoin. Since bitcoin price solely depends on market investors and trends, the digital token has the potential to break US$100k in the coming years. But it is pretty unclear if that could be in 2022. However, prominent crypto names suggest that institutional investors might become the biggest driving force behind bitcoin value in 2022.
Bitcoin was introduced to the world when its pseudonymous inventor Satoshi Nakamoto unleashed the first blockchain whitepaper in 2008. Emerging as the first decentralized digital token, bitcoin aimed to be an alternative to government and central-bank-controlled fiat currencies.
Being the first-ever cryptocurrency to hit the market, bitcoin maintained a low profile for a very long time. Only in 2017, the digital token hit mainstream investors when they realized that they have missed the massive growth. Although bitcoin faced many negative impacts throughout its journey, it has thrived and created a vibrant ecosystem. What started as a simple investment model is now worth over US$2 trillion. Following the success of bitcoin, more than 11,000 cryptocurrencies including stablecoins and altcoins are being traded in crypto exchanges.
Big tech companies are already changing the world for good. But what else do they have in the bag for the financial ecosystem? Cryptocurrency investments! Yes, with the support of major tech conglomerates, bitcoin can breach the US$100k mark in no time. Besides, big tech organizations, more Fortune 500 companies are also anticipated to jump into the bitcoin sphere.
When the bitcoin price reached an all-time high in April, investors were left breathless. Although many generally said the high adoption was the reason for the value surge, silicon valley's top companies played a significant role. Being a crypto enthusiast and influencer, Tesla CEO, Elon Musk's stance on digital tokens played a massive role in value differences. Bitcoin price started going up when Tesla announced that the company has purchased US$1.5 billion worth of bitcoin in February. The price sharply shot up and reached US$58,000 the same month.
Similar to this massive disruption, the bitcoin price is somewhat pegged to the moves by FAANG (Facebook, Apple, Amazon, Netflix, Google) technology companies. If even one of the FAANG companies comes out and says that they are investing or bitcoin or are willing to hold a big portion, that will drive bitcoin value berserk, resulting in the breach of the US$100k mark immediately. They will act as a catalyst to other normal investors, making the bitcoin value go up drastically. Apparently, FAANG companies already hold minor stakes in bitcoin but have not publicized it to the commoners.
Bitcoin and government regulations even sound antonymous to each other in the market scenario. Yes, when the bitcoin price was gradually coming back to its US$50,000 trading value, it was yet again hit by China's regulations. Recently, the country clamped down bitcoin miners due to extreme energy consumption. Now, they have completely banned any crypto activity inside China, including working for foreign companies.
Since China announced its strict rules, the bitcoin price has started falling. Thankfully, at least China has announced its stance on cryptocurrency trading. But other countries like the US and India are still on the run to reach a proper destination. Although both the US and India have no intentions to completely ban cryptocurrency usage, they are yet to come up with a valid regulation. When these things take effect, it could also have a massive impact on the bitcoin price.
Experts say that predicting bitcoin's value, in the long run, is impossible and it solely depends on the will of bitcoin whales. Despite the stubborn commands, many take a step forward and agree that bitcoin will see incredible growth in 2022, lasting till 2025. The conclusion was the result of a survey conducted among 42 crypto experts. Almost 61% of them agreed that despite severe volatility and price fall, bitcoin will experience a value surge in 2022.
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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.
