According to traditional bankers, the most popular cryptocurrency could lose up to 70% of its current value and drop to $8,000. Other experts believe that bitcoin will rise to $40,000 and remain within this range until the end of the year. And the most optimistic traders predict a bullish trend and the rise of bitcoin to a new record of $100,000. For the past few months, the cryptocurrency market has been falling rapidly.
Thus, the two most popular currencies, BTC and ETH, have lost almost half of their value since the beginning of April. One day in June, the very first cryptocurrency was worth $19,000. Although nine months ago, Bitcoin reached an all-time high of around $69,000.
Now we’re observing a correction — bitcoin has gained in value a bit, to about $25,000. What will happen next? Let’s try to find out!
Dramatic Scenario: BTC Price Down to $8,000
Bitcoin could fall even further to $8,000. That is, the cryptocurrency can lose about 70% of the current price. This forecast was made by the chief investment officer of Guggenheim Partners, Scott Minerd.
After falling below $30,000 in early May, bitcoin has been trying to rise above that level. But still regularly fell below this mark. Thus, in a ‘Squawk Box’ interview at the World Economic Forum in Davos, Switzerland, Scott Minerd told CNBC’s Andrew Ross Sorkin the following:
When you break below 30,000 consistently, 8,000 is the ultimate bottom, so I think we have a lot more room to the downside, especially with the Fed being restrictive.
Minerd refers to the U.S. Federal Reserve’s hiking of interest rates and tightening of monetary policy. Currently, the U.S. is fighting inflation by raising Fed rates. Money is getting more expensive, and against this background, the investment attractiveness of tech assets, including cryptocurrencies, is declining.
Optimistic Scenario: BTC Price Up to $100,000
Despite the volatility and the recent price drop, many experts still argue that bitcoin is on its way to a new all-time high of $100,000. However, there are different opinions as to when this will happen.
Most analysts do not name specific dates since they, as a rule, do not come true. Blockchain analyst Matthew Hyland gives a slightly more accurate forecast. He believes that bitcoin could rise to $100,000 by the end of 2022.
The price of bitcoin in January 2022 was equivalent to its price in January 2021, and this is a good achievement for a cryptocurrency. Moreover, currently, traders are increasingly saving bitcoins in their cryptocurrency wallets without listing them on a crypto exchange. That is, soon, the demand for bitcoin may exceed the supply, which will lead to an increase in its price.
Nexo CEO Antoni Trenchev believes that the world’s biggest cryptocurrency can surge above $100,000 over the next 12 months.
The expert noted that he is worried about bitcoin’s short-term prospects and suggested that the coin may fall in tandem with traditional financial markets as the Federal Reserve starts unwinding its massive monetary stimulus program.
But that, in turn, could ‘give further impetus to cryptocurrencies,’ he added, as a collapse in stocks would likely mean the U.S. central bank would eventually go ‘back to easing in no time.’
If Trenchev’s prediction is correct, this would mean that the price of bitcoin should more than double in 2022.
Moderate Scenario: BTC Price Correction to $40,000
According to the forecast of the analytical portal Crowd Wisdom, the recent correction of bitcoin may signal the beginning of a bullish trend, that is, a trend for further price growth.
Based on analysis of charts, trading volumes, and the general mood of traders, the analysts concluded that the bitcoin price in 2022 will reach $40,000 or higher.
Recently, one of the traders announced his expectations about a bullish rally towards $70,000-80,000 in Q4 2022, based on the chart.
Conclusion
Price forecasts allow you to observe the market situation and more accurately assess all fears and risks. As you can see, bitcoin price predictions include both optimistic and pessimistic forecasts. Thus, it remains only to observe how the price of digital gold will change in the future.
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What is the prediction for bitcoin price? What do you guys think? Feel free to share your forecasts in the comments below!
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