Bitcoin at US$80K in 2022? What is the Future of Crypto King?

With institutional investors on board, Bitcoin has the capability to go way beyond US$80k in 2022.

Bitcoin, the world's first and most popular cryptocurrency, reached a new all-time high of over US$68,000 on Nov 10, 2021. Crypto investors were celebrating this huge win, but the beginning of the New Year was like a nightmare. Bitcoin fell to US$33,503. However, experts predict that breaching its long stood resistance will be very easy for BTC if it follows certain norms. Since last month, the Bitcoin price has continued to go on an upward march, and with institutional investors on board, Bitcoin has the capability to go way beyond US$80k in 2022.

Data shows pro traders are neutral-to-bullish

To understand how bullish or bearish professional traders are leaning, one should analyze the futures basis rate. This indicator is frequently referred to as the futures premium, and it measures the difference between long-term futures contracts and the current spot market levels.

A 5%–15% annualized premium is expected in healthy markets, a situation which is known as contango. This price difference is caused by sellers demanding more money to withhold settlement longer.

Why Bitcoin Halving could Act as a Trigger?

Bitcoin halving is an incident that happens roughly every four years. It is the time when the circulation is cut down to make sure the potential of the digital token is delivered. In a nutshell, Bitcoin halving is the process when the rewards for BTC mining get halved. It happens after each set of 210,000 blocks is mined. By doing so, the price remains consonant as the supply is put under a limit.

So far in history, every time a Bitcoin halving took place, the digital token's value went up drastically. However, sooner or later, it will undergo a long bearish period after the bull run. When the first Bitcoin halving took place in 2012, BTC's value rose from US$12 to US$1,150 over time. During the second halving, it crossed the US$20,000 mark. Therefore, many investors believe that a Bitcoin halving could act as the trigger to retrieve the cryptocurrency from its current slump. They claim that Bitcoin will increase in value and achieve better growth.

Could Bitcoin hit US$80K?

The digital currency that was once viewed as mysterious by many in the past has now exploded in both value and popularity. It has mainly become mainstream – Giant financial institutions like Paypal, Visa, JP Morgan, etc., are offering crypto services, and more retail investors are interested in purchasing Bitcoin now more than ever.

At the same time, the world is now witnessing BTC being associated with more institutional investors like Tesla, Microstrategy, etc. Most institutions are now considering converting their cash reserves into Bitcoin as a hedge against financial crises.

The Value of Bitcoin

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.

• The supply and demand of any commodity play a crucial role in driving its value. Similarly, Bitcoin's supply is capped at 21 million which gives more value to the existing few BTCs that are yet to be mined.
• Bitcoin halving also contributes to price growth. It happens every four years, representing a supply-demand.
• Bitcoin's competitors are also a factor behind the cryptocurrency's price growth. In 2017, BTC accounted for more than 80% of the overall market capitalization of the crypto markets. By 2021, that share was down to less than 50%. However, it helped drive BTC's price drastically.

Beyond 2022! Where is BTC Headed?

In 2022, crypto investors and analysts are having a debate on BTC's possibility to reach US$80k by end of the year. However, despite the negative predictions, the far future seems to be exciting in the crypto market. Yes, according to long-term predictions, the crypto ecosystem will take over global finance in 2050. According to a study, 29% said that hypberbit coinization, the BTC overtaking global finance, will happen between 2035 and 2040.