All Bitcoin predictions are positive after weeks of negative
|Today (Source: Investing.com)||buys||$20,838|
|Maximum Bitcoin Price Prediction 2022||buys||Price: $26,568|
|Maximum Bitcoin Price Prediction 2025||buys||$38,266|
Bitcoin Price Prediction: Price Performance in 2022, June 19
|Last 5 days||-6.6%|
|Last 5 days||-7.8%|
|Last 5 days||-6.7%|
Quick summary of Bitcoin’s position in the market
- Market Cap: $391 Billion [Rising]
- Ranked among all cryptocurrencies: 1st
- Bitcoin competitors: Ethereum, Gold (?), National Currencies (?)
- Current performance: underperformer [versus gold and national currencies]
- % of holders who are currently profitable: 50% [Increasing]
Bitcoin Prediction: Is Bitcoin’s Collapse Over?
Bitcoin’s collapse isn’t over yet, but sentiment started to change this Sunday.
- A report published today states that Bitcoin’s collapse is over while supply to exchanges has declined (see tweet below)
- Another report came out today suggesting that more Bitcoin shorts were liquidated today perhaps signaling a fund.
- Some analysts argue that, given that almost half of Bitcoin holders are still in the money, the low of the year has not yet been reached. Bitcoin’s hash rate has declined over the past 3 days suggesting that miners are not confident about Bitcoin prices
- That said, there may be more companies and cryptocurrencies that could go bankrupt in the coming weeks and months (such as Luna, Celsius, 3AG), and the Federal Reserve’s rate hikes have only begun and are nowhere near where the Fed wants it to be.
So while there are reasons to believe that $17,000 was the bottom, there are also some loose ends.
Our estimate is that the price of Bitcoin will stop falling from August or September of this year once US consumer inflation starts to fall. Bitcoin is not expected to reach ATH anytime soon in 2022 or even 2023. (See our forecast at the beginning of this article)
Why is Bitcoin valuable?
There are many who think that Bitcoin is actually of zero value. But the fact is that it is a limited resource of 21 million coins of which 19.1 million are on offer and has been used as an alternative to the national currency
- In Layman’s language, Bitcoin is like gold hidden within a computer network instead of a mine in Africa. The creators deliberately created a limited number of them and created a whole series of tasks that are difficult to achieve. Just like in real gold mining, Bitcoin mining becomes difficult if several people mine at the same time or as the number of Bitcoins continues to shrink. It cannot be used as ornaments, one of the great factors that drive the value of gold.
- To solve this problem, the creators designed it in the form of a currency authenticated via a blockchain. In recent years, Bitcoin has been increasingly used as an alternative to the US dollar or other national currencies. It is now accepted for a fee by many companies around the world.
- There are differences even with the national currency. The value of a national currency like the dollar has risen or fall in a number of factors: the number of dollars printed by the Federal Reserve, how the Fed handles interest rates, the performance of the economy, and so on. However, among them, the role of a central bank (such as the Federal Reserve) is a crucial difference from Bitcoin. The Federal Reserve ensures that the dollar does not experience wild fluctuations in short periods of time so that households and businesses can better manage their lives. While Bitcoin enjoys the absence of central control and therefore any form of voluntary devaluation, it suffers from increased volatility.
Bitcoin Forecast: BTC Performance since 2010
Bitcoin has produced positive returns in 9 out of 11 years. 2018 was the most difficult year that also coincides with the year in which the Federal Reserve reduced the size of its balance sheet. During that year, Bitcoin closed 74% less than the previous year. It took Bitcoin 3 years to recover.
Unlike Alts or even Ethereum, Bitcoin has been there for quite a long time and with a record of proven performance. While the current price collapse would be a dampening in the short run, long-term demand will continue to push prices higher. Especially since the supply of bitcoin mined bitcoins will decrease by half in 2025, in just 2 and a half years. As supply decreases, current volatility is likely to decrease.
|Closing price 2021||$46,388|
|Closing price 2020||$28,994|
|Closing price 2019||Price: $7,216.1|
|Closing price 2018||$3,740.2|
|Closing price 2017||$144,156|
|Closing price 2016||$963.7|
|Closing price 2015||$430.6|
|Closing price 2014||$320.1|
|Closing price 2013||$754.0|
|Closing price 2012||$13.5|
|Closing price 2011||$4.3|
|Closing price 2010||$0.3|