Until now, Bitcoin (BTC) has become the most sought-after crypto asset by investors. So, what are the predictions for Bitcoin in the next few years?
For information, Bitcoin is indeed increasingly loved by the public in recent years. See the following analysis to find out the full prediction regarding this oldest digital asset.
Bitcoin Prediction: Bitcoin Latest News Update
The following are the latest news updates about Bitcoin that you need to know:
“At the end of 2021, BTC had an all-time high or ATH worth $68,000. However, at the beginning of May 2022, the price of Bitcoin collapsed to touch the figure below $28,000.
In addition to Bitcoin, sharp declines also hit stock markets worldwide. The Dow Jones, one of the most popular stocks, also lost more than 1,000 points. It was the most significant single-day drop since 2020. The Nasdaq also fell by nearly 5% in early May.
The factors that made the crypto asset market drop significantly, namely the birth of a policy from the Federal Reserve (The Fed), which raised interest rates by 0.50%. The increase was the largest since 2000.
Bitcoin prices are also known to have recovered in mid-May and are gradually returning to their original positions. For information, the cost of Bitcoin increased 2.06% in the past 24 hours and became $30,000.
Blockwork reports that Celsius—a crypto lending company—has paid off a debt to crypto exchange and obtained 21,962 WBTC as collateral. It makes investors more confident because the company will not be liquidated in Bitcoin.
On the other hand, according to CoinDesk, the United States Securities and Exchange Commission has also rejected the Bitcoin Spot ETF from Grayscale, a trusted authority on cryptocurrency investments.”
Bitcoin Price Movement Over Time
How has the Bitcoin price movement been created from the beginning until now?
If you look back at the beginning of its creation, the discussion about the price of Bitcoin will be very long. This oldest crypto asset was present for the first time in 2009. In this regard, one thing for sure is that Bitcoin is also subject to reasonably high price fluctuations, just like any other crypto asset.
On the other hand, if you want to know the level of volatility in Bitcoin, then we can track Bitcoin price movements throughout 2021. Bitcoin rose by 123% at that time compared to the previous year.
One of the factors that caused the increase, namely the presence of the Bitcoin Taproot update. It was known in 2021, and Bitcoin took less than a month to break the 2020 price record. At that time, the value of BTC jumped to touch $40,000 US dollars on January 7, 2021.
In mid-April, the Bitcoin price reached its latest ATH of over $60K. The increase was due to Coinbase, one of the crypto asset exchange platforms, declaring to go public. However, throughout the summer of 2021, the price of BTC fell by 50%, reaching $29K at its lowest level on July 19.
However, in September, BTC rose again and was at $52,693. However, the increase was temporary because about two weeks later, many accounts made withdrawals, so BTC was hoisted down to $40,709.
Then, on November 7, 2021, Bitcoin hit ATH again at $67,549. This price is seen as the highest BTC price throughout 2021. Then, in early December 2021, BTC dropped to $49,243.
Factors Affecting Bitcoin Price Movements
At least 3 factors affect Bitcoin price movements, which are as follows.
A limited amount is one of the properties that Bitcoin has. BTC is known only to have a supply of 21 million. As for now, 18-19 million BTC are circulating in the market.
High Bitcoin Adoption
The increase in the price of BTC was also driven by the increasing adoption rate of crypto assets. It makes new consumers try to buy and explore the world of crypto assets.
On an annual basis, according to data from digital asset management company CoinShares, Bitcoin adoption has increased by 113%.
Bitcoin price is also affected by cycles or what is commonly called “halving,” which is an algorithmic effort that aims to halve the amount that has been circulating. The halving can affect the rate of entry of new coins into circulation, which can affect the value of Bitcoin holdings.
Bitcoin Analysis and Prediction
The following is an analysis and prediction of Bitcoin in the next few years.
Bitcoin 2022 Prediction
Experts predict that Bitcoin will be able to reach the 100 thousand US dollar mark amid the volatility and the price that had slumped in recent times.
TechNewsLeader, for example, predicts that the price of Bitcoin in 2022 will be $42,664. In addition, is a prediction from DigitalCoinPrice that the cost of this oldest crypto asset in 2022 will be at the level of $43,011.
On the other hand, an analysis from CryptoPricePredictions states. Bitcoin prices throughout 2022 are predicted to reach an average of $37,540.
The Year 2023
CryptoNewsz predicts that the price of BTC in 2023 will surpass the $70,000 mark and hold the market steady. The same site also explains the lowest BTC price will be at $65,000, while the highest growth price is expected to be above $72,000 by the end of next year.
The Year 2024
Still from CryptoNewsz, the price of BTC in early 2024 is predicted to be at an average of $78,000. By 2024, Bitcoin could be trading around the maximum cost of $85,000.
Thus a review of Bitcoin predictions in the next few years, along with the analysis, is essential. See articles about crypto assets, blockchain, and others only at Indodax Academy.