Will Bitcoin Sink or Soar In 2022?
Many people have an opinion on the price of bitcoin and other cryptocurrencies. Predictions for 2022 and beyond range from incredibly bearish to a six-figure value per BTC. However, few experts are willing to put their money where their mouth is, highlighting the need for independent data provided by prediction markets.
The Wild Bitcoin Price Speculations For 2022
Even though bitcoin has seemingly become a more mainstream asset, it remains subject to tremendous speculation. The volatile nature of cryptocurrencies makes their price swing in either direction, often rather spectacularly. As markets are now in a bearish trend, it is a good time to look at what experts think is on the horizon. However, the price aspect is just one crucial factor in gauging Bitcoin’s overall health.
Per this Forbes article, some people expect bitcoin to drop to the low $30,000 range, or even lower, depending on how harsh the liquidation becomes. That sentiment is echoed by Nexo founder Antony Trenchev, who identifies $41,000 as a crucial support level. Bitbank analyst Yuya Haegwa indicates bitcoin may continue to decline in value, primarily due to the Fed’s recent decision to hike interest rates. Mike Novogratz of Galaxy Digital expects another 8% decline to the low $38,000 range.
Looking beyond the short-term volatility, there is still a potential upside to $100,000 or more by 2022. Bloomberg Intelligence’s Mike McGlone expects a push to $100,000 because bitcoin can still be a global reserve asset sooner rather than later. That is an ambitious outlook, but not necessarily impossible in the current landscape. Goldman Sachs analyst Zach Pandl echoes that idea, primarily due to bitcoin taking more market share from gold.
One crucial factor to consider is the overall health of the Bitcoin network. The hash rate recently hit a record high despite some unrest in Kazachstan and China outlawing Bitcoin mining earlier this year. While some analysts eagerly point out fiat currencies aren’t going away “so no one needs to hide money in cryptocurrencies”, the Bitcoin network isn’t disappearing either. Instead, it gains more momentum every year regardless of geopolitical developments.
Making Well-Informed Bitcoin Price Decisions
As opinions on the current and future bitcoin price momentum are all over the place, it makes sense to gather more data to make well-informed investment decisions.
One way to do so is by exploring prediction platforms like CryptoPool, where anyone can share their short, mid, and long-term bitcoin price predictions. Users who agree with the outlook can contribute funds to a pool and earn their share of the total funds if the prediction is correct.
These prediction platforms are also excellent for experts to put their money where their mouth is. It is easy to claim one BTC will be worth $x, $y, or $z by a specific date, but those claims need to be backed up. Performing a technical analysis that helps validate a prediction isn’t enough, as anyone can manipulate the data to their preference. However, a monetary incentive to make accurate claims is a different ball game and introduces a new money-making opportunity.
Following the experts with proverbial skin in the game – through prediction platforms or otherwise – is usually an intelligent decision. These analysts have an extra incentive to be correct in their prediction as it will affect their wealth if they are wrong. Having more people make predictions through these financial incentives will lead to more precise data and less bias in the market.
As everyone can have a different opinion on how much bitcoin should be worth, it will often influence their price predictions. Instead, the better option i is to monetize one’s prediction and make money by casting an accurate forecast, rather than one serving as clickbait. It is a fair and transparent system for analysts to project estimations and for other users to get more data points regarding market sentiment.
In the end, everyone wants to try and benefit from the bitcoin price momentum. Prediction platforms let users do so under bullish or bearish conditions alike. However, that can only happen if traders and analysts put their bias aside for the greater good. A financial incentive such as a pool of funds with a cut going to the pool creator making the analysis may be the required catalyst to facilitate this change.