Cryptocurrencies were among the most valued assets throughout the pandemic, boasting an appreciation of over 400%. Last year (2020), the value of the world’s most popular cryptocurrency – Bitcoin – jumped to $33,114 per coin by the end of the year, which lead many people to buy bitcoin and work closely with exchanging of BTC to USD
Subsequently, in less than three months (early 2021) that figure had nearly doubled to $59,000, peaking at plus $60,000 to hit an all-time performance. However, later the Bitcoin price dropped in May to below $34,000, which rang the bells for a possible bear market.
In this article, you will have a prognosis for Bitcoin prices in the 2021 summer.
What is Going on With Bitcoin Prices? – A Brief Overview
The recent market volatility left even die-hard Bitcoin fans what the fate of Bitcoin would be in 2022. Among common culprits, several people point out factors such as volatility, deadly crossovers, negative news, and crackdowns by regulators have left many making bizarre predictions about the price of Bitcoin.
Amidst all this, one thing hasn’t changed, as Bitcoin remains the king of all cryptocurrencies. While Bitcoin advocates like Michael Saylor (MicroStrategy CEO) reinforced the currency’s long-term value and advised people to HODL with a clenched fist, many others had a different notion.
For example, a recent CNBC poll highlighted that 44% of analysts believe Bitcoin’s price will be below $30,000 by the end of the year. Indeed, BTC’s market capitalization dominance has dropped nearly 36% since the start of the year, which is not a good sign.
Nevertheless, the same report highlighted steady gains after May 2021, but the asset’s extreme volatility explains why many investors believe Bitcoin could fall further later this year.
It Is Time to Buy More Bitcoin or Wait Until Things Get Better?
While it’s not uncommon for people to abandon a ship at the first sign of trouble, many believe Bitcoin isn’t a ship that would sink so easily.
Recently, expert analyst Willy Woo presented the possibility of the entry of die-hard holders to boost the price of BTC. The same thing happened on April 13, 2021, when Bitcoin surpassed $63,000.
Furthermore, in its April Crypto Index report, Bloomberg predicted that the price of bitcoin would rise to a staggering $400,000 in 2022. However, the June 2021 report speculated whether its price would fall or rise, given the several bear cycles in the market.
The June report made more realistic predictions, claiming the price of BTC could hit the $100,000-mark next year. The report highlighted that “Bitcoin is more likely to pick up again towards the $100,000 resistance, rather than holding below $20,000.”
What Have Die-Hard Bitcoin Experts to Say About the Current Scenario?
Bitcoin proponents like journalist Max Keizer have maintained their bullish bets on a solid $220,000 BTC price forecast through 2022. Affirming that BTC price will explode in the long run, Keizer compared it to buying Apple stocks after the price had fallen in the late ’90s (a clear reference to the dot com bubble).
Keizer also pointed out that, at the time, investors had a negative opinion of Apple, but in the long run, it turned out to be one of the world’s best investment options.
Following the same viewpoint, billionaire Tim Draper – founder of venture capital firm Draper Fisher Jurvetson – reinforced his prediction that the BTC price will reach $250,000 ($1.25 million) by the end of 2022 or early 2023.
To reach the figure suggested by Draper by the end of next year, the price of the world’s most valuable cryptocurrency would need to appreciate by around 800% in less than 18 months.
Is it Realistic to Preview Bitcoin’s Rise in the Short Term?
At the moment, cryptocurrency trades at about $31,500, three months after hitting its historic high of $64,000 and two months after one of the biggest selling forces – and price drops – ever recorded in digital asset history.
While many people think Keizer may seem a little too optimistic about the scenario, trading sites predict the exact opposite for the BTC price.
Trade beasts, for example, predicted the price of Bitcoin to reach $32,805,601 in early December 2021 and $33,095,754 in early January 2022, which is lower than the current price. Thus, it is worth noting that the recent bear market has created a dilemma in terms of BTC price forecasts.
Final Thoughts
Undoubtedly, there are many disparities between the price predictions made by people and forecasts made by financial entities, especially considering the growing adoption of Bitcoin at the institutional level.
It’s not clear what is behind the current Bitcoin transition. Indeed, some investors are fleeing Bitcoin because they saw that Bitcoin’s bullish trend has ended, seeking the stability of traditional assets. On the other hand, there are signs that Bitcoin’s momentum is still driving it towards a better price zone.