Bitcoin remains the largest cryptocurrency in the world – by popularity and market capitalization. Since its inception in 2009, it has experienced a dramatic increase in value. However, can it hit $75,000 in 2022? This is the question on the minds of several investors. After all, it attained an all-time high value of $68,000 on November 10, 2021. It would only maintain this value for a very short period – as expected. As of the time of writing, the value of Bitcoin is $43,856. According to several investors, including Seba Bank CEO Guido Buehler, the value of Bitcoin should hit $75,000 in 2022.
Before we dive into how this can be possible, the concept of Bitcoin’s volatility is worth discussing.
Volatility of Bitcoin
Bitcoin rose from just fractions of dollars to about $0.09 when it started rising in popularity in 2010. From there, it has achieved a great leap in value by tens of thousands. In fact, it can experience variation in price by thousands within a day. There are several reasons for this high volatility. This might explain why most experts believe it can always attain a new height. Oftentimes, when the demand for a cryptocurrency exceeds its supply, the price goes up. The value takes a dip when the supply exceeds the demand.
Bitcoin, by design, is limited to 21 million coins. The closer the supply is to this limit, the higher the prices are likely to climb. Moreover, mining is becoming more difficult. This ensures that fewer Bitcoins are being produced, which is less than the demand, most times. It is hard to forecast what happens to Bitcoin prices once this limit is reached. However, as big financial investors compete among themselves in an environment of changing supply, the value of this cryptocurrency will keep fluctuating in response to the actions these investors take.
Learn more about cryptocurrency when you visit Bitcoin Prime. They are a reliable source to cryptocurrency and crypto related articles.
Bitcoin Value Keeps Rising
It is believed that Bitcoin’s value could nearly double from its current price to over $75,000 as more institutional investors begin to embrace the most popular virtual currency across the globe. Some of these players are even attempting to purchase over $100,000,000 worth of digital coins through private transactions. Miners are now carrying out regular sales. Some are even setting up their liquidity desks to hold about $250 million to $30 billion in trades.
Big investors have once stayed away from investing in cryptocurrencies due to their high volatility. Yet, in recent times, more financial institutions are diversifying their portfolios with crypto assets. Many believe that Bitcoin will attain this new height. The question is about timing. After rising to over $68,000, the virtual currency has seen a collapse in its value and has been hovering around $40,000 since then.
As many believe Bitcoin to be the currency for the future, the high demands of Bitcoin by large institutional investors will bring about an imbalance, which will ensure that its price will soar higher again. In other words, these investors trust Bitcoin more and the more the acquisition, the higher the price gets.
Bitcoin has gathered so much attention among investors and enthusiasts since it was introduced. Its high volatility has ensured that there will always be significant variations in its price. While this was a major cause for concern as investors stayed away in the past, many big investors now believe that as the limit of Bitcoin supply nears, it will eventually reach an equilibrium. This has led to the great acquisition of digital coins by these investors, which promises to further trigger an increase in Bitcoin price. However, can Bitcoin hit $75,000 in 2022? Only time will tell.