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- Insights
- Cryptocurrencies
- Stocks
- White Papers
- Industry
- Geography
After hitting a record high of US$68,000 in November, Bitcoin's price has dropped back to the US$46,000 mark. According to crypto enthusiasts, BTC has two possible options in its hand. One is to gain value before the end of the year and touch US$52,000 and the other is to fall back to an even further low of US$43,000. However, if Bitcoin chooses to stay at the top, the only way to do so is to gain more investors in the coming months. That is the only way BTC can reach US$100,000 in early 2022.
Bitcoin began 2021 at US$30,000. The cryptocurrency encountered extreme volatility, which pushed BTC to gain value over time. Along with Bitcoin's price surge, the cryptocurrency market as a whole also grew. However, this brief price plummet seems nothing but a vague threat to investors. They believe that volatility is a part of Bitcoin's existence and such price swings are very common for the digital token to attain a new high in the coming months. Over the past decade, BTC has recorded a steady rise. Since its inception till 2020, Bitcoin was just an investment model that could pump value to your basic price. However, things changed since the 2020 price rally. The cryptocurrency is now seen as a part of people's lives with easy transaction methods, payment models, and institutional investors on board. Therefore, we explore how more investors could connect the falling Bitcoin price to US$100k in 2022.
Bitcoin has emerged as the first and foremost cryptocurrency that took the financial ecosystem by storm. Launched in 2009 by an anonymous person or a group of people called Satoshi Nakamoto, BTC records transactions in a blockchain to prove ownership. Initially started as a simple investment model, Bitcoin has transitioned the traditional financial ecosystem. However, BTC is not backed by central governments or banks. Therefore, its price is pegged to monetary policy, inflation rates, and economic growth measurements that influence the market.
The supply of an asset and the inflation it causes plays an important role in determining its price. Bitcoin's supply got slowed down from 6.9% in 2016 to 4.4% in 2017 and 4% in 2018. On the other hand, Bitcoin halving also contributes to the price rally. The growing demand for BTC will also have a reflection on the digital token. Asian countries like India, Vietnam, and Pakistan are greatly contributing to the price hike of Bitcoin as they gear up their investment portfolio with a digital token. Besides, the cost of production plays an important role in determining the price of Bitcoin. It is roughly a sum of the direct fixed cost for infrastructure and electricity required to mine the cryptocurrency and an indirect cost related to the difficulty level of its algorithm.
The buzz around institutional investors seems unsettling recently. Therefore, experts have come to the conclusion that Bitcoin's price can be driven drastically with the help of institutional investors. MicroStrategy is currently the world's largest public company with the largest Bitcoin investment followed by Tesla, Galaxy Holdings, Voyager Digital, Square, etc.
Besides, a growing number of new wealth managers and institutional investors are also looking to invest in BTC to give value to their portfolios. According to a survey, managers and institutional investors from the US, UK, France, Germany, and the UAE will start investing in Bitcoin like never before. It will be a test to the market in terms of how it works, how it manages infrastructure and liquidity.
2022 is the current buzz. Investors and analysts are having a debate on Bitcoin's possibility to reach US$100k in the first half of next year. However, despite the near future, the actual far future seems to be exciting in the cryptocurrency market. Yes, according to predictions, the crypto ecosystem will take over global finance in 2050. According to a study, 29% said that hypberbit coinisation, the month when Bitcoin overtakes global finance, will happen between 2035 and 2040.
