- February 28, 2022
- Posted by: admin
- Category: Best Crypto
Despite the significant drop in the price of Bitcoin last year, the cryptocurrency is now on a recovery path. It is currently hovering around $37,800, gaining nearly 4% in the past 24 hours. Although it is yet to breach the crucial support level of $4000, the Bitcoin Fear & Greed Index has stabilized at 24 from 28 January.
Rollercoaster ride on Bitcoin
The current prices, however, do not provide a profit for 40% of Bitcoin investors. Is Bitcoin on the verge of reaching its $100K price prediction?
No $100k for a while
Finder’s published a report that estimated Bitcoin will be worth $76,360 by the end of 2022. The report stated,
“Bitcoin (BTC) is expected to peak at US$93,717 this year before dropping to $76,360 by the end of 2022, according to Finder’s panel of 33 fintech specialists. This is roughly 60% higher than the price of Bitcoin at the beginning of 2022.”
There is also no $100K on the table for Finder. Nevertheless, it is possible to surpass the threshold in the future. In addition, the report explains that
“By the end of 2025, the panel predicts BTC will be worth $192,800 and climb to $406,400 by the end of 2030.”
A potential increase in interest rates is believed to be the reason for the conservative estimates. As early as last year, this was also considered one of the reasons for Bitcoin’s price decline. Market chaos and low investor confidence resulted from the Federal Reserve’s monetary policy tapering announcement at the time.
Gavin Smith, the CEO of Panxora Group, predicted that he would earn $70,000 by the end of 2022.
“[The] first half of 2022 will be dominated by concerns over higher interest rates, which will impact all risk assets including Bitcoin. We wouldn’t be surprised to see Bitcoin decline a further 30% from current levels.”
Likewise, JP Morgan has lowered its earlier long-term price target for Bitcoin to $100,000 from $150,000. Based on the volatility and size of the gold market, the bank has now set the price of gold at $38,000. JP Morgan estimates that gold will reach $50,000 by 2020.
“Our previous projection that the bitcoin to gold volatility ratio will fall to around 2x later this year seems unrealistic. Our fair value for bitcoin based on a volatility ratio of bitcoin to the gold of around 4x would be 1/4th of $150,000, or $38,000.”
Retailers and institutions are showing an increased interest in cryptos, according to Dr. Iwa Salami, a law professor at the University of East London. Thus, cryptocurrency has emerged as a critical asset class that “cannot be ignored.”
It is indeed true that the last five-week streak of investment outflows for Bitcoin is over. According to Coinshares, bitcoin experienced $14 million inflows during the week ending 21 January.