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2021 is coming to an end closely. However, the cryptocurrency market continues to flourish beyond expectations. Unfortunately, Bitcoin's price didn't reach the much anticipated US$100k mark this year. But experts predict that breaching its long stood resistance will be very easy for BTC if it follows certain norms. With institutional investors on board, Bitcoin has the capability to go way beyond US$100k in 2022.
Bitcoin has emerged as the first cryptocurrency in human society. Being the foremost internet money, BTC has managed to keep its position for over a decade now. Its supply-demand, durability, easy-transaction features, and censorship resistance have put the digital token at the forefront for a long time. So far, Bitcoin was confined to the cryptocurrency circle alone. But 2021 proved that the virtual token can go beyond that and its capabilities can invade every walk of life. Bitcoin has huge potential to grow into a global reserve currency over time as well as a universal unit of account. After hitting US$65,000 in May, Bitcoin's price was down for a while before it reached another record high of US$68,500 in October. The recent high was backed by Bitcoin ETF's debut in the NYSE. Although the cryptocurrency market is extremely volatile and insatiable, experts say that they can clearly see Bitcoin's price touching US$100k in 2022 if it follows certain criteria.
2021 was not just an eventful year for Bitcoin. Ethereum, one of the major rivals of BTC also had an amazing year so far. To be precise, ETHER outperformed Bitcoin on growth rate in 2021, signaling a possible transition in the coming years. According to Mike McGlone, a Bloomberg Intelligence Commodity Strategist, BTC could reach US$100k if it catches up with Ethereum's performance in 2021.
Etheruem is well known for following Bitcoin's footprint. Whenever Bitcoin's price reaches a record high, ETHER also takes the same path and rallies at a high value. Similarly, BTC's fall also indicates a plummet for Etheruem. However, the rise of Ethereum has left enthusiasts in a buzz recently. Experts believe that ETHER is creating a trend to overtake Bitcoin as the world's most valued cryptocurrency. Therefore, if Bitcoin outperforms ETHER on the yearly ground, reaching its long stood resistance will be easy.
A major factor behind Bitcoin's growth in 2021 is institutional investments. More and more large organizations are lining up to try their hand on cryptocurrency and their first choice is always BTC. But getting FAANG onboard will have a massive impact on the digital token. It will act as a catalyst to future outcomes and price surges.
Tesla and its Rocky CEO, Elon Musk, is always at the forefront to drive cryptocurrency towards new highs. Tesla became the first such large tech company to accept Bitcoin payment for its vehicles. Besides, the company has also purchased US$1.5 billion worth of Bitcoin in 2021, after which the price shot up to US$58,000. On the other hand, Bitcoin needs FAANG (Facebook, Apple, Amazon, Netflix, Google) support to lead the next-generation changes. Public recognition from a FAANG would be a major factor to push the asset to US$100k and further.
Bitcoin is not backed by government authorities or central institutions. It is a decentralized model that is independent of authoritarian intrusion. Although the cryptocurrency does display some attributes of a fiat currency, it is scarce and cannot be counterfeited. Some of the other factors driving Bitcoin's growth are listed below.
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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.
