Cryptocurrencies have recently been through a lot of ups and downs when it comes to their prices, with swings that can be considered extremely strong when compared to other established markets. This is mainly because the crypto space does not seem to have a specific direction, which makes the coins fluctuate without reason at times, simply moving up or down depending on traders.
However, some coins have been a lot more interesting for investors, mainly because they managed to retain a specific price tag with bigger ups and downs, instead of simply going through a free fall that can make them lose value in a matter of minutes. According to Mike McGlone, Bitcoin is just undergoing a unique phase in its history, an approach that will make it more stable in the future.
In his comments, McGlone said, “Bitcoin is in a unique phase, I think, of transitioning from a risk-on to risk-off global digital store of value, replacing gold and becoming global collateral. So I think that’s going to be happening this year.” This is one of the main reasons why Bitcoin seems to be a great investment choice right now, showing steady growth in the past few days.
The cryptocurrency market is a very difficult one to navigate, mainly because it changes so much in such a short period. It is expected that several cryptocurrencies will experience a considerable value drop this year, though some expect them to go back up sooner or later.
Bitcoin Predictions in 2022
According to Chris Kline, co-founder, and COO of Bitcoin IRA, by the end of 2022 BTC can be worth $100.000 per coin. While this may seem to be a bullish statement, it makes perfect sense when taking into account the resemblance of BTC to gold. This is mainly because both assets have a limited supply and there is no way of creating more coins for any reason whatsoever.
“By 2022, we might be looking at $100,000 per Bitcoin,” Kline said “As institutional investors begin participating in the digital currency market by offering Bitcoin ETFs and various other digital currency-related products, Bitcoin’s price will receive a boost. The mere possibility of these events unfolding has already been enough to draw the attention of millions.”
The fact that Bitcoin is facing strong selling pressure right now might actually be good for its future value, as it makes it more stable in the short term. However, this is not the same for other coins like Cardano, Ripple, and Dogecoin, which may not recover from the dip.
As you are aware, Ethereum is another popular cryptocurrency with a market cap of over $70 billion. Unlike BTC, its trading volume is considerably smaller than that of Bitcoin, with most trades being concentrated on the USDT pair. This is the other coin that will become a gold mine and immune to the pressure.
The introduction of the ETH 2.0 is a major boost to the coin as it has significantly reduced the impact on the environment. Cardano, Ripple, and Dogecoin will not be able to benefit from this upgrade.
From the look of things, it is just a matter of time before Bitcoin and Ethereum become fully immune to the strong selling pressure. This means that they are a good long-term investment choice, especially if you are willing to hold on to your coins for several months or even years.
Put it this way, the pressure might make the price of BTC and ETH go down in the short term, but they will bounce back sooner rather than later, representing a good opportunity for people who are looking for stable assets.