Is Bitcoin A Good Investment in 2022? Here Are the Reasons
2022-02-08 17:55:32
Bitcoin started 2022 with an opening price of $46215.50 (data from Gate.io), which was nearly twice as valuable as it was in January 2021 ($28926.16). Bitcoin price again reached an all-time high in 2021, as values exceeded over $65,000 in February 2021, April 2021 and November 2021 while its market capitalization added roughly $545 billion.
But before the first month of 2022 had ended, Bitcoin had nearly lost all of the previous year’s gains, dropping into the $33,000 range in January. It's worth noting that Bitcoin’s price dipped below $34,000 for the first time since July 2021. What’s more, according to data compiled by Bloomberg, Bitcoin notched only 11 up days last month, meaning that it spent 65% of the month mired in a decline.
Bitcoin Price Predictions for 2022: $100,000
However, for Bitcoin, these kinds of ups and downs are nothing new. Despite the volatility and recent slumping price, many experts still say Bitcoin is on its way to passing the $100,000 mark, though with varying opinions on exactly when that will happen. According to what most people term as conservative predictions, Bitcoin price will hit $100,000 by 2023. However, a strong consensus of analysts predict Bitcoin will go over this price in 2022.
For example, Jurrien Timmer, director of global macro at Fidelity Investments, suggests that investors should expect a “pretty sustainable” rise in Bitcoin’s long-term value driven by organic market movement, with the $100,000 threshold in “near-sight”. Bloomberg senior commodity strategist Mike McGlone predicts the price of Bitcoin will stage a comeback and blow past $100,000 “as soon as this year”.
What does this mean? At time of writing, Bitcoin price live on Gate.io is $44,887.75, if you invest in Bitcoin right now, you have the possibility to earn at least 122% in 2022!
What is Stimulating the Price of Bitcoin?
One of the main factors driving the price of Bitcoin is the rate of new consumers buying and exploring it. Bitcoin adoption has been increasing at an annual rate of 113%, according to data from the digital asset management firm CoinShares. CoinDesk reported last month the number of new wallets worldwide increased 45% from January 2020 to January 2021, to an estimated 66 million.
Apart from increasing interests from individual investors, global companies are adding Bitcoin to their reserves. Tesla made headlines in 2021 when it came to buying Bitcoin, but the floodgate was first opened by cloud software company MicroStrategy, who bought $425 million worth of Bitcoin in August and September 2020. According to a database from the crypto analytics firm CoinGecko, this $3.6-billion company owns 121,044 bitcoins at present.
Data from Bitcoin Treasuries revealed in August 2021 showed that companies with bitcoin on their balance sheets held 1,660,473 BTC, almost 8% of the total bitcoin supply. Given that the corporate bitcoin accumulation race has just started as most of the companies that added bitcoin to their balance sheet did so in 2020 or 2021, we may see more big names join in the race this year. And the history of Bitcoin price has told us: the big players can easily move the price.
But before the first month of 2022 had ended, Bitcoin had nearly lost all of the previous year’s gains, dropping into the $33,000 range in January. It's worth noting that Bitcoin’s price dipped below $34,000 for the first time since July 2021. What’s more, according to data compiled by Bloomberg, Bitcoin notched only 11 up days last month, meaning that it spent 65% of the month mired in a decline.
Bitcoin Price Predictions for 2022: $100,000
However, for Bitcoin, these kinds of ups and downs are nothing new. Despite the volatility and recent slumping price, many experts still say Bitcoin is on its way to passing the $100,000 mark, though with varying opinions on exactly when that will happen. According to what most people term as conservative predictions, Bitcoin price will hit $100,000 by 2023. However, a strong consensus of analysts predict Bitcoin will go over this price in 2022.
For example, Jurrien Timmer, director of global macro at Fidelity Investments, suggests that investors should expect a “pretty sustainable” rise in Bitcoin’s long-term value driven by organic market movement, with the $100,000 threshold in “near-sight”. Bloomberg senior commodity strategist Mike McGlone predicts the price of Bitcoin will stage a comeback and blow past $100,000 “as soon as this year”.
What does this mean? At time of writing, Bitcoin price live on Gate.io is $44,887.75, if you invest in Bitcoin right now, you have the possibility to earn at least 122% in 2022!
What is Stimulating the Price of Bitcoin?
One of the main factors driving the price of Bitcoin is the rate of new consumers buying and exploring it. Bitcoin adoption has been increasing at an annual rate of 113%, according to data from the digital asset management firm CoinShares. CoinDesk reported last month the number of new wallets worldwide increased 45% from January 2020 to January 2021, to an estimated 66 million.
Apart from increasing interests from individual investors, global companies are adding Bitcoin to their reserves. Tesla made headlines in 2021 when it came to buying Bitcoin, but the floodgate was first opened by cloud software company MicroStrategy, who bought $425 million worth of Bitcoin in August and September 2020. According to a database from the crypto analytics firm CoinGecko, this $3.6-billion company owns 121,044 bitcoins at present.
Data from Bitcoin Treasuries revealed in August 2021 showed that companies with bitcoin on their balance sheets held 1,660,473 BTC, almost 8% of the total bitcoin supply. Given that the corporate bitcoin accumulation race has just started as most of the companies that added bitcoin to their balance sheet did so in 2020 or 2021, we may see more big names join in the race this year. And the history of Bitcoin price has told us: the big players can easily move the price.
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