Could Bitcoin Reach $100,000 in 2022?

Bitcoin seems to be growing very fast lately. However, it is still far from the all-time high of $68,000, which it reached in November.

Bitcoin has become the leading digital parent currency in the journey and existence of many of the currencies that we own today. It is known to have been created by Satoshi Nakamoto and his identity remains a mystery to this day. Since the early days, Bitcoin has always had and will be a skeptic as it has continued to reach the massive highs it has gained today.

With the digital currency gaining massive adoption by the public, there is a strong belief and speculation even by top analysts that one Bitcoin will reach $100,000 in the coming periods.

Current Bitcoin Status

Despite the volatility and recent price drop, many analysts believe that Bitcoin will eventually cross the $100,000 mark, however, there are different views on when this will happen. Volatility is nothing new, which is one reason why experts advise new market investors to be careful when allocating a portion of their portfolio to cryptocurrencies.

According to Goldman Sachs Group, bitcoin will continue to gain market share in gold as a result of increased use of digital assets, making a widely publicized enthusiast price estimate of $100,000 a possibility. Goldman Sachs believes that Bitcoin will reach high levels if it is able to replace gold as a store of value.

According to Goldman, the price of bitcoin would rise to just over $100,000 if its share of the market store of value increased “by default” to 50% over the next five years, for a compound annual return of 17% or 18%.

According to Coin Metrics, the world's largest digital currency by market capitalization was already trading at $4,6170.43 on Monday.

"I think he's going to cross $100,000 this year, maybe by ... the middle of it," said Anthony Trenchev, co-founder and managing partner of Nexo, on CNBC's "Street Signs Asia." According to its website, the company claims to be the world's largest lending institution in the digital finance industry. According to the company, it has issued more than $6 billion in credit and assets under management to over 2.5 million members worldwide.

Thanks to its track record, there is every reason to believe that Bitcoin has been the predominant winner in the cryptocurrency market. Bitcoin's prospects may also be hampered by continued regulatory scrutiny and extreme price volatility. Trentchev, for example, believes that Bitcoin will see significant growth soon for “two fundamental reasons.”

One is that institutions are “expanding their coffers” and “filling them with bitcoin,” he claimed, without going into details. MicroStrategy and Square are two well-known examples of companies that have bought large amounts of bitcoin.

Another reason is the need for large capital investors to find a new haven to contain their wealth

Bitcoin price predictions.

After hitting an all-time high in November, it was easy to predict the $100,000 price of Bitcoin late last year. With Bitcoin's sharp decline since then, the prediction game has become even more difficult.

The most skeptical of the cryptocurrency market predicts that Bitcoin will collapse to $10,000 by 2022, but the compromise could be that Bitcoin can still reach $100,000, as many experts predicted late last year but at a slower rate.

As major organizations like Nike and other big brands explore ways to monetize their products in the metaverse, rookie analysts are reassessing the crypto industry as a whole. Altcoins are growing in popularity as a result of the emergence of games, worlds, and products, which are changing investor perceptions of Bitcoin.

Many experts are hesitant to estimate a specific amount or date, rather than pointing to the direction of bitcoin's increase in value over time. Last October, Jurrien Timmer, global macro manager at Fidelity Investments, predicted "very sustainable" growth in the long-term value of Bitcoin, driven by organic market activity, with $100,000 on the horizon.

Bitcoin vs Gold

Warren Buffett, for example, said, "Why would I buy gold?" Because it is “simply out there”, “doing nothing” and “not producing anything”, the same can be said of Bitcoin. However, it has a storage value and acts as a currency hedge when compared to the US dollar.

Some aspects of it make sense in this environment, especially with inflation at its current levels and people concerned with the strength of the US dollar, but also concerned about how the markets will react.

 Regardless of all the recent volatility in the cryptocurrency market and the bitcoin price drop in the market, bitcoin is still more than double the value it was just a few years ago. These types of ups and downs are nothing new to Bitcoin and Bitcoin will likely reach $100,000 soon.

So, after considering these mind-boggling predictions, the main question that comes to mind is whether Bitcoin can advance wildly towards any of the aforementioned goals. The answer, in my opinion, is a resounding yes, mainly because the price of bitcoin has been known to be unpredictable in the past.

Second, we've been getting more institutional and governmental adoption lately which is likely to increase over time.

This is one of the reasons for Cathy Wood's target of $500,000 on bitcoin and other assets.

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