Experts Say Bitcoin Could Hit $100,000 In 2022
It’s been a rocky start to the year for Bitcoin, but experts still say it will hit $100,000 — and that it’s more a matter of when not if.
Bitcoin on Thursday dipped below $20,000, falling nearly 5% over the last 24 hours. This is the second time the largest crypto has fallen below $20,000 this month and it remains under pressure, according to Edward Moya, a senior market analyst at OANDA.
“Bitcoin is struggling to hold onto the $20,000 level,” he says. “If Bitcoin breaks below the recent low around $17,500, there isn’t much support until the $14,500 level.”
The latest crypto market crash was spurred by momentary de-risking from Wall Street as many investors are feeling pessimistic about the economy amid surging inflation, a shaky stock market, and rising interest rates. The crypto market has increasingly tracked the stock market in recent months, which makes it even more intertwined with global economic factors.
In addition to macroeconomic factors, Moya says investors fear that problems at major crypto players could unleash a wider market shakeout. Crypto hedge fund Three Arrows Capital is facing a liquidity crisis after the collapse of TerraUSD and luna, and crypto Celsius announced it would suspend customer withdrawals.
“The news cycle has been pretty awful for crypto markets,” he says. “After reports of default, it comes as no surprise that Three Arrows Capital, a cryptocurrency-focused hedge fund has been ordered to liquidate. Concerns are growing that the collapse of Three Arrows Capital could trigger further market contagion.”
With no end in sight, the war, inflation, and shifting monetary policy in the U.S. will likely continue to drive more volatility in the coming weeks and months, experts say.
Bitcoin has only been above $45,000 for a few short stretches over the past six months and hasn’t been above $50,000 since Dec. 25, 2021. Amid the ups and downs, Bitcoin’s current price is a long way off from the latest all-time high it hit in November when it went over $68,000. But even with the recent decline in price, Bitcoin is still more than twice as valuable as it was just a couple of years ago. 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. And a recent study by Deutsche Bank found that about a quarter of Bitcoin investors believe Bitcoin prices will be over $110,000 in five years.
The volatility is nothing new and is a big reason experts say new crypto investors should be extremely cautious when allocating part of their portfolio to cryptocurrency. Bitcoin has shown as steady a rise in value over the years as any other cryptocurrency on the market. It’s only reasonable for Bitcoin investors to be curious about how high it can ultimately go.
Unfortunately, Bitcoin’s price is extremely difficult to predict and even more susceptible to market factors than more established asset classes. But we decided to ask some experts for their best guesses anyway. Here’s what they said:
Bitcoin Price Predictions
It was easy to predict a $100,000 Bitcoin price late last year, coming off its latest all-time high in November. With Bitcoin’s big fall since then, the prediction game is even trickier.
The most extreme crypto skeptics say Bitcoin will tank to as low as $10,000 in 2022, but a middle ground might be to say the cryptocurrency can still climb to $100,000 like many experts predicted late last year — just on a slower timeline.
“The most knowledgeable educators in the space are predicting $100,000 Bitcoin in Q1 2022 or sooner,” Kate Waltman, a New York-based certified public accountant who specializes in crypto, told us back in November 2021.
But now, bullish experts are re-evaluating the crypto industry altogether as major corporations like Nike and other big brands are looking at ways to monetize their products in the digital metaverse. The rise of metaverse games, worlds, products, and experiences is increasing the popularity of altcoins, which has changed investors’ sentiments about Bitcoin (known as the original crypto).
Many experts are hesitant to predict a number and a date, but rather point to the trend of Bitcoin increasing its value over time. 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, predicted Jurrien Timmer, director of global macro at Fidelity Investments, last October.
“What I expect from Bitcoin is volatility [in the] short-term and growth [in the] long-term,” says Kiana Danial, founder of Invest Diva and author of “Cryptocurrency Investing For Dummies.”