Regardless of the fact that Bitcoin's price has recorded a significant decline since the start of 2022 as the US Federal Reserve braces to remove stimulus, bulls remain as confident as ever. The world's biggest cryptocurrency by market capitalization has lost about $80 billion since the beginning of 2022, tumbling to its lowest price since the early-December flash crash. However, there have been expectations that it will hit the fabled $100,000 level in 2022, and it has not affected investors who buy and sell Bitcoin in any way.
To reach that level, Bitcoin has to more than double its current level of $42,900. It's not that it can't—generated plenty of triple-digit yearly gains over the last decade—but analysts think that with a more aggressive Fed, the path ahead may be tougher for not just Bitcoin, but for cryptocurrencies in general.
As traditional and crypto markets grapple with the impact of coronavirus on global economic recovery, fears of US interest rate hikes and the impact of protests and political turmoil in Kazakhstan on the country's significant mining operations appear to be the forces driving the initial dip in Bitcoin's price, sending investors who buy and sell Bitcoin into a frenzy.
Bitcoin's price has been notably fluctuating between $45,000 and $50,000 over the last few weeks, reaching a recent high of $52,100 on December 27; a major boost for those who buy and sell Bitcoin.
However, on Wednesday, January 5, the major cryptocurrency's price plummeted below $45,000 to $42,500, with the rapid drop in the cryptocurrency's price mirrored by a drop in Ethereum's price.
In early November, Bitcoin's price rose sharply to near $70,000, as investors who buy and sell Bitcoin anticipated seeing the cryptocurrency's $1 trillion market cap hold solid ahead of a tumultuous trading period.
However, in late 2021, it fell below $50,000 as US and UK markets had to deal with increased concerns over Covid-19, the Omicron version, and excessive inflation.
The latest drop in Bitcoin price coincided with a significant sell-off on the Nasdaq index on Wednesday, January 5, as the US central bank prepared to step away from its coronavirus pandemic monetary policies with interest rate hikes and a possible cut of assets to shrink its balance sheet.
Crypto mining companies in Kazakhstan, which have grown since China forbade cryptocurrency mining in the country, were knocked down early this year due to a statewide internet outage as the government cracked down on cryptocurrency.
If you intend to buy and sell Bitcoin, or you're already into it, there are a few things you should know about what 2022 has in stock for this coin. Read on to find out more.
Without a doubt, the year 2021 will be remembered as a turning point for cryptocurrency. Cryptocurrency knowledge has reached the mainstream as a result of record prices, the rise of non-fungible tokens, and growing global use. After starting the year at US$30,000, the total market value more than tripled to more than US$3 trillion in November, with market leader Bitcoin reaching an all-time high of US$67,826.
Predictions that Bitcoin's price would hit $100,000 before the end of the year appeared to be on track at the time. Uncertainty about new Covid versions and debt problems with Chinese property firm Evergrande damaged traditional stock markets, which in turn impacted the crypto market.
But, after a disappointing conclusion to an otherwise spectacular year for Bitcoin and crypto, what does the market have in store for 2022?
According to some industry experts, it is "improbable but possible" that Bitcoin might fall below $30,000 this year as the crypto bubble bursts. This is no good news for those who buy and sell Bitcoin.
The mass marketing of Bitcoin brings back the memories of stockbrokers' activity in the run-up to the 1929 crisis, and experts do not necessarily think it's a stretch to expect bitcoin will fall below $30,000 this year. Nevertheless, there is at least a 30% chance.
In 2021, bitcoin climbed from approximately $33,000 at the start of the year to as high as $69,000 in November before dipping to around $46,000 at the conclusion of the year. The world's first and largest cryptocurrency fell even more to roughly $42,319 USD. This could be enough to give investors hope that regardless of the price fall predictions, Bitcoin may still witness a similar astronomical rise in 2021.