Bitcoin experienced a sharper crash after the US Federal Reserve’s interest rates were raised. Not only did Bitcoin prices crash, but the entire cryptocurrency market also went back into a harsh downtrend. Once again, cryptocurrencies are in trouble in 2022. But what is a realistic forecast for Bitcoin price for the end of the year 2022? We’ll tell you in this article what you can expect from the Bitcoin price, which scenarios are possible, and where the Bitcoin price will probably be at the end of 2022.
How will the Bitcoin price develop in 2022?
The year 2022 has not been the year for the Bitcoin price so far. Bitcoin lost massively in value in December of last year. The downward trend continued throughout the first quarter of 2022. In November 2021, the Bitcoin price reached an all-time high of over $68,000.
During the first quarter of 2022, bitcoin continued to fall in several sharp falls until it built a bottom resistance at $35,000. Bitcoin has not yet been able to fall below this floor. Since then, the price of the cryptocurrency has stabilized again and in some cases risen above $40,000 again. But what is a realistic forecast for Bitcoin by the end of 2022?
Why couldn’t the 2021 Bull market continue?
The bull market started at the end of 2020 and continued in the first quarter of 2021. We saw bitcoin rise from $10,000 in September 2020 to over $63,000 in April 2021. This massive bull run was only interrupted by the sharp correction due to China’s mining ban in April.
After the correction in the summer of 2021, the Bitcoin price was able to rise massively again in autumn. But the bull market could not continue. This was partly due to the fact that many negative factors prevented further growth. Crises such as the discovery of a new virus variant, high inflation, and most recently the war in Ukraine are affecting the Bitcoin price.
Why is Bitcoin correlated with the Stock market?
The Bitcoin price seems to have become more and more dependent on the stock market in the last 2 years. In particular, the development of tech stock prices (NASDAQ) has a major impact on the Bitcoin price. Bitcoin is often determined by external influences.
The dependence on the stock market arose because more and more Bitcoin financial products such as Bitcoin ETFs and Bitcoin Futures were launched and these became increasingly popular as forms of investment. Furthermore, the proportion of institutional investors such as banks has increased significantly in recent years. These big investors have more and more influence on the course. So what can a realistic forecast for the Bitcoin price look like in this environment?
Bitcoin Price Prediction for the end of 2022
At the moment there are still many uncertainties in the future price development of bitcoin. But what is a realistic forecast for the Bitcoin price at the end of the year?
Much depends on whether we can experience another bull run in the second half of the year. At the moment it seems that the Bitcoin price should remain rather bearish. Some analysts assume that after the lack of a massive bull run at the turn of the year, there could be another bull run that could take Bitcoin to over $ 100,000.
But if Bitcoin does not see this bull run, a realistic Bitcoin forecast must be based on prices below the Bitcoin all-time high of 68,000. In figure 3 below, we can see a clear sideways trend in Bitcoin’s price-action. Prices on several occasions dipped towards 30K then jumped back higher towards 60K.
What is the realistic forecast for Bitcoin 2022?
Bitcoin could continue to stabilize between $35,000 and $40,000 over the next few months. In the second half of the year, the Bitcoin price should then rise above $40,000 again. If there is no massive bull run, we could see a slow increase in the Bitcoin price.
Analysts at Longforecast.com see Bitcoin at around $60,000 by the end of the year. Walletinvestor.com only expects a price of $40,000 by the end of the year. These are both realistic predictions for Bitcoin at the end of 2022.