Bitcoin Price Predictions for 2022 | Blockgeeks
Bitcoin is known for its volatility, but what will the price be in 2022?
Some investors and executives are predicting big things. Gary Vaynerchuk believes that Bitcoin could reach $100,000 by then, while Elon Musk says it could be worth “zero.” So, who’s right? Only time will tell!
However, we’ve gathered data from industry leading crypto experts who have made serious predictions about Bitcoin reaching an all time six-figure high in 2022.
- Bitcoin Price Predictions for 2022
- What will trigger the increase in Bitcoin prices
- How to invest in Bitcoin
- The potential risks and rewards of investing in Bitcoin
- Is Bitcoin a Good Investment?
Bitcoin suffered through jaw-dropping records in 2021.
Where the whole industry was convinced that BTC will hit USD $100K by the end of 2021 – and it seemed like it would when it hit an all-time high of USD $68K in November, it ended up at USD $40K in December.
That was its worst December since 2013.
However, experts today are speculating the market and have high hopes for bitcoin to hit a six-figure high in 2022.
Cathie Wood, founder, CEO & CIO of ARK investment Management, who despite the rollercoaster ride that Bitcoin Price experienced in the past year, remains bullish on her original prediction made in September 2021.
She predicted that BTC will reach $500K in 5 years.
Woods also went on to reason her prediction based on some serious influencing factors and said, “The reason we’ve used the $500,000 mark for a bitcoin price target is that if institutional investors move into bitcoin and allocate 5% of their portfolios to it, by our estimates bitcoin will go up by $500,000. We can tell this is happening by looking at on-chain analytics,” referring to bitcoin’s transactions being visible to anyone via its public blockchain.
Anthony Pompliano, a founder and partner at Morgan Creek Digital, predicts the future Bitcoin price to reach $250,000 by the end of 2022. He also notes that Bitcoin is not tied to any assets so it is not likely to be affected by market swings making it a safe haven for seasoned investors.
Willy Woo is that one crypto analyst you may want to keep tabs on. He runs a platform where he offers exclusive insights to all crypto traders regarding BTC price forecasts and more. He has been predicting BTC prices for years as he analyzes every aspect under a microscope.
While talking about his recent forecast in light of last year’s crash In Dec, Willy Woo says,
“I would say we will be right in the middle of it. It’s like $100,000 by the end of next year (2022). And whether we whip up or down, it could go much higher and come back, but roughly the middle line is somewhere around $100,000.”
Willy Woo’s prediction is also one that predicts a six-figure all-time high in 2022.
Tim Draper, a renowned venture capitalist and cryptocurrency enthusiast has made some huge predictions about Bitcoin in recent months. He first predicted that BTC would hit $250k by end-2020 and it looks like he’s sticking with this prediction for 2022 as he confirmed that he’s sticking to his original outlook for the end of 2022.
PlanB is known for planBTC.com and is famous for the Stock to Flow (STF) model then S2FX. They are known to influence a huge community of crypto investors and enthusiasts through their twitter profile.
They successfully predicted BTC prices perfectly in September and October, but then the model broke in November. And since it made historically accurate predictions, most people started following them closely.
They recently ran a poll on twitter, predicting the prices of BTC by the end of 2022, which also left us with a six-figure prediction.
According to PlanB’s (100TrillionUSD) twitter poll, 32.6% predict Bitcoin will value at USD $100K to $200K.
The CEO of Microstrategy expects the price of bitcoin to reach $6 million but before reaching that milestone, it will reach $600,000 per BTC.
While holding 17,732 BTC personally, Michael believes that BItcoin is “unstoppable” and will replace gold.
The director of Fidelity Investments made no predictions for 2022, however, he has forecasted that BTC price will reach a six-figure high of $100K in 2023. His demand and supply model indicates that Bitcoin is on pace to reach $100K, and to focus on how the value of Bitcoin has evolved in the past decade, BTC is destined to increase in value.
Bitcoin’s price is tough to predict, and it is more susceptible to market factors than other well-known assets.
One of the biggest fundamental factors contributing to the increase in its price is the mainstream adoption of cryptocurrencies at institutional levels.
As more companies are accepting Bitcoin payments, more people are buying into it. And since there’s a limited supply of 21 million BTC, the price continues to climb.
Jeff Dorman, Chief Investment Officer at Arca, stated, “Bitcoin has graduated from a digital assets playground to a mainstream global investment. Investors now have the knowledge and means to buy Bitcoin themselves, and we are seeing it in real-time, which happened quicker than we anticipated.”
With that being said, Bitcoin is only going up and above – with plenty of highs to go along with those lows – you never know when prices may take off again!
Here are some major factors that are going to influence the predicted six-figure surge in Bitcoin Price in 2022.
While this would have seemed like a joke just a few short years ago, institutional investors are now participating in the Bitcoin market on a significant scale. Crypto asset manager Grayscale recorded $3.3 billion in inflows in Q4 2020, and 93% of the money came from institutional investors.
Investment companies like Ruffer, One River Digital Asset Management and Skybridge Capital have also made significant allocations to Bitcoin. Meanwhile, highly respected investors such as Paul Tudor Jones and Stanley Druckenmiller have publicly expressed positive views on Bitcoin.
Over time, it’s becoming much less taboo for major investors to discuss Bitcoin seriously or even allocate some of their capital to it. These institutional investors manage amounts of capital that can have an enormous effect on Bitcoin, which is still a relatively small asset class.
Microstrategy is the largest publicly traded company that holds 122,478 bitcoins worth more than five billion USD.
Microstrategy is the first company to adopt it as a primary treasury reserve asset. Their strategy is “Acquiring & holding long term”, by purchasing bitcoins through use of excess cash flows or debt/ equity transactions.
Microstrategy acquired BTC at an average purchase price at USD $29,861 per coin and for the cost basis of $3.7 billion – creating impressive returns for investors who hold onto these coins.
When Tesla confirmed acquiring $1.5bn worth of BTC in January 2021, it caused the BTC value to jump 17% – a record high at the time. It also announced that it’ll accept BTC as payments and reported $1.99 billion worth of Bitcoins on its balance sheet at the end of 2021.
Why are institutional investors becoming increasingly interested in Bitcoin? Investors are realizing that Bitcoin can function as a store of value due to its unique properties.
For one, Bitcoin is programmed to be scarce – as we mentioned earlier, there is a maximum cap on its supply set at 21 million BTC. Before this supply limit is reached, new BTC coins are entering circulation regularly.
However, in contrast to fiat currencies, the issuance of BTC is completely predictable and is not affected by arbitrary policy decisions. 6.25 BTC enter circulation approximately every 10 minutes, and this amount will decrease 50% in 2024 with the next Bitcoin halving.
Meanwhile, central banks are printing money at accelerated rates. Confidence in major currencies like the US dollar and the euro is decreasing due to fears of currency debasement.
Thanks to the properties described above, more and more people are perceiving Bitcoin as a digital version of gold, a precious metal that has served as a safe haven for thousands of years.
Bitcoin has some unique advantages compared to gold – for example, it can be transferred anywhere in the world for a relatively low cost, and it is also almost infinitely divisible. In addition, storing Bitcoin is much more efficient and cheaper than storing gold.
Over more than a decade since its launch, Bitcoin has proven itself as an extremely resilient system thanks to its decentralized design. The Bitcoin network is transferring billions of dollars of value every day, and its mining infrastructure is stronger than ever.
There have been many attempts to improve on Bitcoin over the years by developers who created new cryptocurrencies and blockchain-powered platforms, but none have managed to reach the same level of success as the world’s first cryptocurrency.
However, that isn’t to say that Bitcoin is perfect and can do it all. Bitcoin transactions are relatively slow when compared to other electronic payments, and even many other cryptocurrencies. During periods of high activity on the Bitcoin network, transaction fees can increase to a point where making smaller transactions doesn’t make much economic sense. In addition, Bitcoin does not support blockchain-based smart contracts, a concept pioneered by Ethereum.
The core technology of Bitcoin is unlikely to see any groundbreaking changes moving forward. Some of Bitcoin’s most appealing characteristics are its stability and resilience, which could be compromised if Satoshi Nakamoto’s original recipe is tampered with too much.
Instead of introducing flashy new features to Bitcoin, talented developers are creating layer 2 solutions that perform much of their work off-chain but still use the Bitcoin blockchain to guarantee security.
The Lightning Network
The Lightning Network has emerged as the leading project when it comes to addressing Bitcoin’s scalability woes. It allows users to open a payments channel and send extremely cheap and fast BTC between each other. When the channel is closed, the information is broadcasted to the Bitcoin blockchain.
The most significant and recent upgrade in four years, Taproot is a major step towards adding scalability and speed on Bitcoin’s network. With Bitcoin’s scaling promises, the chances of it becoming an effective medium for transactions increase. In fact in past years its worth was tied to how much utility there would be with using bitcoins – so if more people start transacting on this network then their value could potentially rise too!
And once BTC reaches its cap limit, miners will need to rely more heavily on transaction fees as their reward value starts to decrease. With an upgrade that shortens bitcoin transactions and improves network speeds for processing them there is a greater chance of hitting those numbers sooner rather than later!
Stacks is an example of a project that’s leveraging the security of the Bitcoin blockchain for the Stacks blockchain platform, which supports smart contracts and decentralized applications.
For those who are interested in investing, there is plenty of data on which to base a decision. Although it’s impossible to know exactly what will happen over the next few years, there exists interesting and useful information from other investors and executives that can help guide you toward an investment decision.
And we have listed down that information into quick takeaways before you make your decision!
1. Before making any decisions around cryptocurrency investments, it’s important to do your own research and fully understand the technology.
2. Bitcoin prices will be set by supply and demand, so we can use economic forecasting to estimate future price movements.
3. For those interested in investing, it’s best to buy small amounts over time and only invest what you’re willing to lose. That’s why many crypto experts advise to never invest more than 5% of your overall portfolio in cryptocurrency.
4. The key is buying and holding for the long term, which you can do by taking advantage of any price dips and safely storing your investment offline in a hardware wallet.
5. Cryptocurrencies are extremely volatile, so be careful around major news releases such as industry regulation announcements or technological updates. If you’re not prepared for the rollercoaster, it’s best to stay away from cryptocurrency investment altogether.
Find out How to buy Bitcoin in Anywhere?
There are a lot of things going for Bitcoin as an investment opportunity.
It is a decentralized currency with a finite supply. This means transactions cannot be forged and new units cannot be printed out to inflate the value of the currency. This is also one of the major reasons why the value of Bitcoin has increased so much over it’s decade-long lifespan – it’s supply is limited, but demand keeps increasing as more people learn about it.
At the same time, the value of Bitcoin has been known to fluctuate a lot over time. In fact, it dropped from $10,000 in March 2020 to below $4,000 due to the economic recession triggered by the Covid-19 pandemic.
That is a 60% drop in just a few days!
This means that if you invested around USD $10,000 into Bitcoin at that time, you would have about $4,000.
That’s the potential risk you’re running into when you’re investing in Bitcoin.
Bitcoin then went on to soar to an all-time high of $64,000 in November 2021. Those who bought 1 BTC for $4,000 in March 2020, would have a value of $64,000 just 20 months later. That’s a gain of 16x.
And these are the kind of rewards many have experienced with long-term bitcoin investments.
This is not uncommon for Bitcoin.
These catastrophic losses and subsequent jaw-dropping gains are more the rule than the exception, and is why many people who suffer from a dip in price are confident that Bitcoin will be able to pay off for them later on.
For those who are still unsure, it can be helpful to think of cryptocurrency as an investment vehicle rather than actual money.
Investing in cryptocurrencies isn’t all that different from investing in real estate or the stock market. You’re putting your money into something with hopes that it will increase in value and eventually bring you a return.
The important thing is to always do your research, and understand what you’re getting yourself into before making any decisions. There’s plenty of information out there but it can be hard to know what information to trust in such a rapidly growing sector.
Have a look at our Crypto Investing Masterclass to help you build a personalized crypto investment strategy!