When Will Bitcoin Stun Everyone Again With Crazy Growth?
Although Bitcoin has had a bumpy start to the year, analysts believe it will eventually reach $100,000 – and that it will be a matter of when not if. Learn more about Bitcoin price jumps, such are those listed in the post below, and when you think the time is right, you can go to CEX.IO and how to purchase crypto using Google Pay.
Bitcoin’s price has hovered above $40,000 as investors worry about growing inflation, geopolitical tensions, and the potential of the US Federal Reserve tightening monetary policy.
Bitcoin had been on the rise recently, trading above $47,000 before falling below $45,000 following the Fed’s hawkish comments. In addition, according to the most recent inflation report released, consumer prices increased by 8.5 %in the year to March.
In recent months, the crypto market has been more closely linked to the stock market, making it even more interwoven with global economic variables like those resulting from Russia’s war in Ukraine. Experts predict that the war will cause further instability in the following weeks and months with no end in sight.
“Amid increasing geopolitical dangers and growing concerns about the economic future, volatility will most certainly return to Bitcoin – and the conventional financial markets,” Bitfinex’s trading staff predicted in a tweet. Bitfinex is a cryptocurrency derivatives exchange situated in Hong Kong.
Over the course of early 2022, Bitcoin has only been above $45,000 for a few brief periods, and it hasn’t been above $50,000 since December 25, 2021. Despite this, Bitcoin has remained above its 6-month low of $34,000, which it hit in late January.
Despite the ups and downs, Bitcoin’s current price, at the time of making this post, is still a long way from its all-time high of $68,000, which it reached in November of 2021. It’s worth more than twice as much as it was just a few years ago. These types of ups and downs are nothing new for Bitcoin.
Many analysts predict Bitcoin will eventually reach $100,000. However, there are varying opinions on when that will happen. According to a recent poll conducted by Deutsche Bank, over a quarter of Bitcoin investors believe the cryptocurrency will be worth more than $110,000 in five years.
Volatility is nothing new, and it’s one of the reasons why new crypto investors should proceed with caution when devoting a portion of their portfolio to cryptocurrency. Over the years, Bitcoin’s value has climbed as steadily as any other cryptocurrency. It’s only reasonable for Bitcoin investors to be concerned about its future potential.
What Influences Bitcoin’s Price
Supply and demand, public mood, the news cycle, market events, scarcity, and other economic factors all influence the price of cryptocurrencies, just as they do any other currency or investment.
Bitcoin’s value is influenced by more factors than ordinary currency or securities because it is a new and emerging asset. Here are a few examples:
Currently, there are only 18 to 19 million Bitcoins in circulation, with manufacturing stopping at 21 million. According to industry insiders, the intrinsic scarcity of bitcoin is a significant component of its appeal.
According to Alexis Johnson, president of Light Node Media, a blockchain public relations and events agency, “there is a set supply but escalating demand.”
Other analysts argue that Bitcoin is valuable because people value it. “The psychological factor is why everyone is buying,” says Nelson Merchan, co-founder of Johnson’s Light Node Media. This determines if Bitcoin and other cryptocurrencies are authentic challenges for the typical customer. The supply and demand principle only works when people want something scarce – even if it didn’t exist before.
According to Waltman, one of the critical causes fuelling Bitcoin’s price surge is the rate at which new users are buying and investigating cryptocurrencies.
She claims that “crypto technology is being accepted higher than humanity first adopted internet technology.” The compounding acceleration of new adoption might continue to push Bitcoin’s value higher and higher, assuming it continues.
Finally, a cycle known as halving has a significant impact on Bitcoin’s price. Although it is complex and algorithmic, halving is a stage in the Bitcoin mining process that reduces the pay-out for mining Bitcoin transactions.
Coming off it’s all-time high in November 2021 it wasn’t simple to anticipate a Bitcoin price over $100,000 late last year. With Bitcoin’s steep decline since then, the prediction game has become much more challenging.
In November 2021, Kate Waltman, a New York-based certified public accountant specialising in crypto, said: “The most educated instructors in the sector are expecting $100,000 Bitcoin in Q1 2022 or sooner.”
But, as influential organisations like Nike and other big brands explore methods to monetise their products in the digital metaverse, bullish analysts are re-evaluating the crypto industry. The popularity of altcoins is growing due to the emergence of metaverse worlds, products, games, and experiences, which has shifted investor perceptions of Bitcoin (known as the original crypto).
Many experts are hesitant to estimate a specific amount or a particular date instead of pointing to the trend of Bitcoin’s value increasing over time. Last October, Jurrien Timmer, director of global macro at Fidelity Investments, forecasted a “very sustainable” growth in Bitcoin’s long-term value, driven by organic market activity, with the $100,000 milestone insight.
Volatility makes determining the “what” and “why” of your bitcoin approach challenging. Consider what you intend to achieve and why you want to join in such a volatile market before investing in Bitcoin or any alternative asset. This will make it easier for you to stay focused.