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Can Bitcoin reach $ 100,000 in 2022? • Benzinga Crypto | Business Top stories

Can Bitcoin reach $ 100,000 in 2022? • Benzinga Crypto

Have you decided to take part in the action? You can buy Bitcoin on Webull and Gemini!

From its inception initiating an entire industry of decentralization to its current valuation of over $ 2,000 billion, Bitcoin was the first decentralized peer-to-peer cryptocurrency that introduced the world to blockchain technology.

As the price of Bitcoin fluctuates, many people are wondering: Will Bitcoin hit $ 100,000 in 2022? To find the answer, Benzinga breaks down some of Bitcoin’s previous price cycles.

Is $ 100,000 Bitcoin Possible or Impossible?

Bitcoin is considered to be one of the most volatile assets to trade, making it incredibly difficult to predict its future price. One way to examine whether it is possible for Bitcoin to hit $ 100,000 is to take a look at price actions from previous market cycles.

At the time of its launch in 2009, Bitcoin was trading for less than a dime. About a year later, Bitcoin saw its first rally, appreciating to over $ 30 per BTC. A few months later, Bitcoin entered its first bearish market, hitting a low of around $ 2.

Fast forward to 2013, when Bitcoin entered another rally hitting all-time highs over $ 1,200 – leading to a 40,000% return on investment for investors who bought at the previous all-time high. Over the next year, Bitcoin depreciated to below $ 200.

In 2017, Bitcoin entered another bull market, appreciating to around $ 20,000 – an 800% return from the previous high of $ 1,200. The following years would develop into a bearish market for Bitcoin, reaching a local low of around $ 3,200.

The post-COVID rally marked an all-time high for Bitcoin at just under $ 65,000 per coin – over the next few months Bitcoin’s price has consolidated, with a low of $ 29,000.

In November 2021, Bitcoin took a big boost that led to new all-time highs of around $ 69,000. Over the next several months, the price fell to $ 42,000.

If these Bitcoin bullish cycles continue to grow modestly as previous cycles have demonstrated, it is possible that Bitcoin will hit $ 100,000. That would put Bitcoin’s market cap at around $ 2 trillion, not far from Microsoft’s market cap of $ 2.4 trillion.

Bitcoin Value Analysis and Predictions

Bulk rewards and market sentiment are two factors that play a role in determining the value of Bitcoin. Every 4 years, the amount of Bitcoin rewarded to miners halves, slowly changing the supply in circulation, which affects the price.

The current market sentiment around Bitcoin has started to drop as the price has fallen over the past few months. While many investors believe this reduction could be the start of a bear market, it is probably too early to make such a claim. Until Bitcoin drops below its current support level and forms lower lows, there is still a possibility that the price will accelerate in the following months.

Will Bitcoin be unstable at $ 100,000?

Historically, when Bitcoin hits an all-time high and its price has peaked, the price drops in a short period of time. After this price drop, consolidation occurs before it enters the next bull run, leading to extremely volatile prices. If these historic Bitcoin price cycles continue, it is likely that Bitcoin will not be a stable asset anytime soon.

Benefits of investing in Bitcoin

There are many benefits to investors who invest in Bitcoin. One of the most appealing aspects would be its limited supply – where there will never be more than 21,000,000 BTC ever minted.

A key value of Bitcoin is the code it is built upon, which has inspired the rapidly growing Decentralized Finance (DeFi) industry. Blockchain and consensus mechanisms have enabled the future of smart contracts and peer-to-peer transactions, essentially creating an entire industry of decentralization.

Another advantage of investing in BTC is that the market never closes, allowing traders to buy or sell Bitcoin at any time of the day. This feature makes it extremely easy for traders to take profits as they don’t have to wait for the markets to open to liquidate their positions.

Disadvantages of investing in Bitcoin

A major downside to investing in Bitcoin is that it is a difficult asset to value, resulting in its volatility. It’s important to consider that the value of speculative assets like crypto, art, and gold comes from what people are willing to pay for them.

Another downside to Bitcoin is its limited use case. Bitcoin is best used as a store of value while other cryptocurrencies such as Ethereum have more diverse use cases. Bitcoin fees are relatively high, making it difficult to complete transactions for micropayments or even daily transactions. Altcoins offer different features for small transactions like these.

Mining and proof of work

Bitcoin relies on the arguably outdated proof-of-work consensus mechanism, where computers validate blocks of transactions by solving mathematical puzzles every 10 minutes. This is the process known as cryptocurrency mining.

The first computer to solve the puzzle and clear the transaction receives a small portion of BTC. Every 4 years, the block reward for Bitcoin is halved, known as “halving”. Historically, Bitcoin has entered bull markets around the midpoint. The rewards have a direct impact on the supply of BTC in circulation, which has an impact on the price.

Best online exchanges to buy Bitcoin

There are many different crypto exchanges that traders can choose from, some of which are Coinbase Global Inc. (NASDAQ: COIN), Webull, eToro, Gemini, and Voyager. A centralized exchange is a great way for individuals to start buying cryptocurrency. Make sure to take a look at what each exchange has to offer, as they offer different features for investors.

1 minute exam

Coinbase is one of the largest cryptocurrency trading platforms on the internet. From Bitcoin to Litecoin or from Basic Attention Token to Chainlink, Coinbase makes it easy to buy and sell major cryptocurrency pairs.

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and improved functionality.

While Coinbase doesn’t offer the most affordable prices or the lowest fees, its straightforward platform is fairly easy for complete newbies to learn in a single transaction.

Best for

  • New cryptocurrency traders
  • Cryptocurrency Traders Interested in Major Pairs
  • Cryptocurrency Traders Interested In A Simple Platform
Advantages

  • The simple platform is easy to use
  • Full mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto to learn more about available coins
The inconvenients

  • Higher fees than competitors

To start

securely via eToro website

Disclosure: eToro USA LLC; Investments are subject to market risk, including possible loss of capital.

1 minute exam

eToro, headquartered in Cyprus, England and Israel, has been providing currency products and other CFD derivatives to retail clients since 2007. A major advantage of eToro is its social trading operations, including OpenBook, which allows new customers to copy the best performing transactions from the platform. Its social trading features are top notch, but eToro is losing points for its lack of tradable currency pairs and underwhelming research and customer service features.

Best for

  • United States Based Cryptocurrency Traders
  • Social traders and copiers
  • Simple user interface
  • Community engagement and follow-up of other traders
Advantages

  • 25 cryptocurrencies
  • Extensive network of social trading features
  • Large customer base for new traders to emulate
The inconvenients

  • U.S. traders can only buy cryptocurrency

1 minute exam

Gemini is a cryptocurrency exchange and custodian that provides investors with access to 26 coins and tokens. Founded in the United States, Gemini is expanding globally, particularly in Europe and Asia. The offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.

Gemini is one of the only brokers to offer multiple platform options depending on skill level. New investors will love Gemini’s streamlined interface of mobile and web apps, while advanced investors might appreciate all the tools that ActiveTrader comes with.

Along with a plethora of platform choices, Gemini users also have access to hot insured wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.

Best for

  • New investors looking for a simple mobile and web app
  • Experienced investors who need a more advanced platform with more tools
  • Users looking for a one-stop-shop to buy, sell and store all their coins
Advantages

  • Easy and fast registrations – can start in just a few minutes
  • Multitude of platforms to accommodate traders of all levels
  • Hot wallets include insurance to protect you against theft and hacking attempts
The inconvenients

  • Charges both a commission and a convenience fee for users who buy and sell through the desktop or mobile app

Bitcoin as an investment

As an investment, Bitcoin is completely speculative. A lot of followers think the DeFi space is a bubble waiting to burst. Others believe DeFI is the most revolutionary technology humans have ever built and that it will completely restructure society.

If you are looking to invest in a long term crypto project, then Bitcoin may be a great investment for you. Remember: don’t invest more than you can afford to lose, as Bitcoin will likely continue to be a volatile asset.

Benzinga has developed a specific methodology for classifying cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our Cryptocurrency Methodology page.

Eleon Lass

Eleanor - 28 years I have 5 years experience in journalism, and I care about news, celebrity news, technical news, as well as fashion, and was published in many international electronic magazines, and I live in Paris - France, and you can write to me: eleanor@newsportal365.com

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