Experts Say Bitcoin Could Hit $100,000 In 2022. Here’s What Investors Should Know
It’s been a rocky start to the year for Bitcoin, but experts still say it will hit $100,000 — and that it’s more a matter of when, not if.
Bitcoin’s price continues to hover near $43,500 Thursday after briefly breaking below a recent uptrend. Last week, it had jumped back above $45,000 for the first time since March 2. The upward trend persisted throughout last week, with Bitcoin’s price briefly surpassing $48,000 mark. In the 24-hour period, most cryptocurrencies — including Bitcoin — are in the red. In general, markets slid late Wednesday after hawkish comments from the U.S. Federal Reserve. Minutes from the Fed’s March meeting Wednesday showed its plan to shrink its balance sheet by $95 billion each month to combat inflation.
Though Bitcoin is down 6% in the last seven days, Bitcoin has been trending up in recent weeks. The current surge follows the Federal Reserve’s announcement earlier this month that it would raise interest rates for the first time in three years, along with President Joe Biden’s new executive order on cryptocurrency. The order directs government agencies to coordinate on a strategy to regulate cryptocurrency, and experts say it could bring more stability to the crypto market in the long-term.
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Bitcoin has also seen extra volatility recently as a result of Russia’s war in Ukraine. With no end in sight, the war will likely continue to drive more volatility in the coming days, experts say.
Bitcoin has only been above $45,000 for a few short stretches over the past three months, and hasn’t been above $50,000 since Dec. 25, 2021. Still, Bitcoin has stayed above its 6-month low below $34,000 in late January. Amid the ups and downs, Bitcoin’s current price is a long way off from the latest all-time high it hit in November, when it went over $68,000. But even with the recent decline in price, Bitcoin is still more than twice as valuable as it was just a couple years ago. For Bitcoin, these kinds of ups and downs are nothing new.
Despite the volatility and recent slumping price, many experts still say Bitcoin is on its way to passing the $100,000 mark, though with varying opinions on exactly when that will happen. And a recent study by Deutsche Bank found that about a quarter of Bitcoin investors believe Bitcoin prices will be over $110,000 in five years.
The volatility is nothing new, and is a big reason experts say new crypto investors should be extremely cautious when allocating part of their portfolio to cryptocurrency. Bitcoin has shown as steady a rise in value over the years as any other cryptocurrency on the market. It’s only reasonable for Bitcoin investors to be curious about how high it can ultimately go.
Unfortunately, Bitcoin’s price is extremely difficult to predict and even more susceptible to market factors than more established asset classes.
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