Bitcoin (quotation BTC) is the largest coin by market capitalization. Bitcoin had a respectable 60% bull run last year, but is currently trading a 35% drop from its all-time high of nearly $ 67.000.
As the most valuable and established cryptocurrency in the world, it attracts a lot of attention, criticism and speculation - and rightfully so. The big question on Bitcoin watchers' minds is: What will its maximum price be in 2022?
While no one knows for sure, there are several analysts who have recently made their predictions on the price of Bitcoin.
Analysts predict a very swinging price
Cryptocurrency analysts are an eccentric and opinion-filled group. An article published two weeks ago on Insider.com - formerly Business Insider - cited the following price predictions from investment banking analysts: Goldman Sachs predicted that BTC will hit $ 100.000 in 2022; JPMorgan saw it at $ 148.000 last November, but reduced it to $ 38.000 last month; while Citigroup has predicted that Bitcoin will hit $ 318.000 by December 2021 and has not revised that target.
Cathie Wood has said numerous times that a $ 100.000 Bitcoin is possible in 2022, citing the fact that Bitcoin's liquidation volume has surpassed Mastercard. She further adds that recent network updates and the growing use of the Lightning Network payment application on the Bitcoin blockchain are driving her usefulness. Wood predicts that the value of a single Bitcoin could exceed $ 500.000 by 2026 and $ 1 million by 2030.
While on the flip side of the Bitcoin hype is cryptocurrency critic Peter Schiff who argues that his analysis of technical price charts suggests that Bitcoin has experimented with a "double top" model. A "double top" is a price pattern over time that tends to be bearish if a key support threshold is breached. Schiff argues that if Bitcoin drops below the current $ 30.000 per coin threshold, there will be nothing to stop it from plummeting to its $ 10.000 price target.
If two things happen in 2022, Bitcoin could reach $ 200.000
Despite this, another Bitcoin tracker said there are two factors that could ultimately push Bitcoin's price to hit its $ 200.000 target. Fundstrat Global Advisor co-founder Tom Lee said in an interview what two factors are needed to reach its target price:
- current investors moving into crypto
- regulatory action to legitimize the digital assets sector
“The easiest way to see a big breakthrough in cryptography is to get existing investors in the US - not new investors - to allocate Bitcoin. Seventy-six percent of America's wealth is controlled by people over the age of 65. That's nearly $ 100 trillion held by people who think Bitcoin is a hobby or stuff that people living in the basement play with. I think regulation could unlock a lot of that money. Just imagine if 2% of $ 100 trillion goes to cryptocurrencies, you could see a 5-10, 15-fold increase in the total value of the network. "
Could Bitcoin hit $ 200.000 this year?
While a $ 200.000 Bitcoin this year would be great, it's unlikely to happen. When considering the level of dysfunction in Congress, cryptocurrency regulation won't be a priority issue before politicians break ranks for the summer break in July to start campaigning for mid-term elections in November. Furthermore, there does not appear to be a catalyst to trigger a 2% transfer of investments from baby boomers' retirement accounts to cryptocurrencies.