Fundstrat Global Advisor Managing Partner Tom Lee has a price target of $200,000 for Bitcoin, but a lot would have to happen to hit that target this year.
- Bitcoin’s current price action is trading at a 35% discount from its peak.
- Over 90% of all Bitcoin coins have been mined, however, the circulating supply is at a three-year low – so investors are holding, not selling.
- Experts predict that the Bitcoin price could range between $10,000 and $318,000 this year.
- Fundstrat Global Advisor co-founder Tom Lee presents a compelling case for a $200,000 goal.
Bitcoin (BTC) is the largest coin by market cap, worth over $827 billion to date, according to CoinMarketCap.com. Last year, Bitcoin had a respectable price of 60%, but it is currently trading down 35% from its all-time high of nearly $67,000 on November 8, 2021.
As the most valuable and established cryptocurrency, it attracts a lot of attention, criticism, and speculation – and rightly so. The big question on Bitcoin watchers’ minds is, “What will its peak price be in 2022?”
Although no one knows for sure, several analysts have recently taken their Bitcoin price predictions into account.
Analysts predict Bitcoin price to range between $10,000 and $318,000 in 2022
Cryptocurrency analysts are an eccentric and opinionated bunch. An article published two weeks ago on Insider.com — Previously Business Intern – cited the following price predictions from investment banking analysts: Goldman Sachs expects BTC to hit $100,000 in 2022; JPMorgan had it at $148,000 last November but cut it to $38,000 last month; while Citigroup predicted that Bitcoin would hit $318,000 by December 2021 and did not revise this target.
Cathie Wood, fiery crypto bull and fund manager at ARK Investment Management, has repeatedly stated that $100,000 Bitcoin is possible in 2022, citing the fact that Bitcoin settlement volume has overtaken Mastercard. She further adds that recent network upgrades and the growing use of the Lightning Network payment app on the Bitcoin blockchain are driving its scale and usefulness. Wood predicts that the value of a single bitcoin could exceed $500,000 by 2026 and $1 million by 2030.
While on the flip side of that bitcoin hype, you have stalwart crypto critic Peter Schiff who says his analysis of technical price charts suggests bitcoin has been in a “double top” pattern. A “double top” is a price pattern over time that tends to be bearish if a key support level is breached. Schiff claims that if Bitcoin falls below this current threshold of $30,000 per coin, nothing will stop it from cratering all the way to its price target of $10,000.
If two things happen in 2022, Bitcoin could reach $200,000 per coin
Despite the wide swings in previous analysts’ forecasts, another bitcoin tracker said there are two factors that could ultimately push the price of bitcoin towards its price target of $200,000. Fundstrat Global Advisor co-founder Tom Lee said during a Monday interview on CNBC Crypto Worldthe two factors needed to achieve his price target are current investors getting into crypto and regulatory action to legitimize the digital asset industry.
“The easiest way to see a big step function happen in crypto is to get existing investors in the US — not new investors — to allocate to Bitcoin. Seventy-six percent of the wealth in America is controlled by people over the age of 65. That’s nearly $100 trillion owned by people who think bitcoin is a hobby or stuff people live with in the basement. think regulation could unlock a lot of this movement. Imagine if 2% of the $100 trillion were allocated to crypto, you could see a five to 10, 15x increase in total network value.”
Could Bitcoin hit $200,000 this year?
While $200,000 Bitcoin this year would be great, it is unlikely to happen. When you consider the level of dysfunction in Congress, crypto regulation won’t be a priority until politicians pause for summer recess in July to start campaigning for the midterm elections in November. . Additionally, there does not appear to be a catalyst to trigger a 2% investment shift from baby boomer retirement accounts to crypto.
While no one can predict the future with 100% certainty, we do know that over the past 10 years Bitcoin has outperformed all other asset classes, delivering annualized returns of over 230%. While Bitcoin is unlikely to hit $200,000 this year, it would be difficult to even hit $100,000 if macroeconomic conditions turn unstable. However, given the strong deflationary nature of Bitcoin and the underlying fundamentals, it is possible for Bitcoin to hit a new all-time high in the range of $75,000-$90,000.
And by “rough” I mean my personal guess based on my Magic 8 ball and crystal ball feedback – so don’t take this as financial advice and be sure to do your own research.
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