Bitcoin (BTC) has closed the year close to $48,000 at the time of writing. Although there could be some slight changes in the price of Bitcoin before midnight, we can already say that BTC experienced a very positive 2021. But what can we expect for Bitcoin in 2022?
Bitcoin’s Positive 2021
Bitcoin has had a very positive 2021. The largest cryptocurrency started the year close to $28,000 and it hit an all-time high of $69,000 in November. Throughout the year, the market has also experienced some volatility as Bitcoin moved to over $64,000 in April and retraced to below $30,000 in summer.
At the time of writing, Bitcoin is being traded at around $48,000, registering a price increase of 71% when compared to the price at the beginning of 2021. This was a year full of new and interesting things, including decentralized finance (DeFi), non-fungible tokens (NFTs) and companies investing in Bitcoin.
Let’s also not forget that El Salvador was the first country in the world to make Bitcoin legal tender. This allowed the country to welcome new companies and individuals interested in Bitcoin and cryptocurrencies. Moreover, it can also be considered the first example of a country that moved away from the U.S. Dollar (USD) and decided to embrace Bitcoin.
Furthermore, several companies were able to add Bitcoin to their balance sheets. This allowed them to gain exposure to the largest cryptocurrency in the world. This trend could continue in 2022 and attract a larger number of companies.
Bitcoin’s Price Prediction for 2022
When it comes to price prediction in 2022, there are many things to take into consideration. For example, if Bitcoin registers the same price growth as it did in 2021, then it would end the year with a price of over $80,000. However, some analysts such as PlanB consider that Bitcoin could continue moving higher and eventually hit a price per coin of $100,000.
It is very difficult to have a clear Bitcoin price prediction for 2022. Moreover, we are not financial advisors and this should only be considered for educational purposes.
If Bitcoin moves higher, it is highly possible for other digital currencies to move higher as well. This already happened in 2021 when other coins such as Ethereum (ETH), Cardano (ADA) or Solana (SOL) registered very large price increases.
It is just a matter of time to see how far Bitcoin could go and whether it would be possible for BTC to hit new highs in 2022.