Bitcoin has had four straight weeks of high volatility, with regulatory news and a sharp price drop in the headlines. The price of Bitcoin is currently below $ 50,000. A little over a month ago, its price reached a maximum close to US $ 70,000
The drop below $ 50,000 disappointed many investors, but the crypto market can change within a day. While many bet that the price of Bitcoin could hit $ 100,000, so far it doesn’t look like that’s going to happen with only about two weeks to go by the end of the year.
However, investors seem excited about the future prospects for Bitcoin, and the general sentiment is bullish.
Medium and long-term projections
Even if Bitcoin and the cryptocurrency market are not as high as investors would like, they are still quite optimistic about the future based on a number of factors. From regulation to new technological developments and more institutional investments, there are many factors that point towards growth.
Institutional inflows have been consistently strong for the past six months, and Bitcoin has seen one of the best capital inflows in its history. Companies like MicroStrategy continue to invest funds in BTC as well, at a time when some would argue that the price of Bitcoin is a bargain.
The fact that Bitcoin has managed to enter more mainstream applications has also been of great help. The use of Bitcoin in applications and payment services such as Cash App and PayPal has brought more exposure to the network.
The number of Bitcoin addresses has also hit a new all-time high, indicating overall growth. For analysts, 2022 will also be a good year for the cryptocurrency market, but opinions, unsurprisingly, vary between the most optimistic and the least optimistic.
Although this year has by no means been an easy road for Bitcoins holders, with strong rallies and deep corrections throughout the year, all commentators were optimistic about its price for next year.
“My prediction is that it will remain volatile, however the long-term trend will point upward and double in terms of total market capitalization per year on average,” said Kjetil Hove Pettersen, CEO of the Norwegian Bitcoin miner. Kryptovault said, adding: “I expect a strong increase in the short term, in 2022 we can see $ 140,000 or more.”
However, Pettersen also stressed that it is “impossible to predict precisely” where the price might go, and that technical analysis will not necessarily work when external factors come into play.. “There are so many external factors and influences at play that it makes it difficult to apply traditional technical analysis or historical comparisons.”Said the Bitcoin miner.
Source From: Ambito
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