Bitcoin, the world’s most well-known and popular cryptocurrency, was able to hit a new record of US$68,000 on November 10, 2021. Cryptocurrency investors were celebrating this massive victory, but the start of the New Year was a nightmare. Bitcoin decreased to $33,503. Experts predict that breaking its long-standing resistance will be easy for BTC if it adheres to certain standards. Since recent month’s update, the Bitcoin price continues to move up, and, with institutional investors taking part, Bitcoin has the potential to raise over US$80k by 2022.
Data Indicates That Pro Traders Are Neutral, If Not Bullish
To know which direction professional traders are on, it is necessary to look at the basic rate for futures. The same can be done for other cryptocurrencies like Ripple while buying it or converting Ripple to INR. The indicator is often called the futures premium, and it measures the variance between long-term contracts for futures and the current market prices. A premium of 5%-15% per year is standard in healthy markets. It is called contango. The price difference can be caused by sellers asking for more cash to delay settlement for longer.
What Is The Reason Bitcoin Halving Can Be An Event Trigger?
Bitcoin halves an event that occurs approximately every four years. It’s the time of year that the amount of circulation is reduced to ensure that the full value of the currency is realized. In simple terms, Bitcoin halving is the procedure whereby the benefits of BTC mining decrease by halving. It occurs after each set of 210,000 blocks has been mined. This way the price is kept constant since the supply is placed below a limit.
In the past, each time the Bitcoin halves occurred, the digital token’s value increased dramatically. But sooner or later, it will go through a bearish phase following the bull market. In the initial Bitcoin halves that occurred in 2012, the price of BTC went from $12 to $1150 as time passed. In the second halving, it surpassed the mark of US$20,000. Many investors believe that the Bitcoin halving could be an opportunity to lift this cryptocurrency out of its decline. They assert that Bitcoin will appreciate in value and experience greater growth.
Could Bitcoin Reach US$80K?
At first, viewed as mysterious by many people in the past, the digital currency has since exploded in value and popularity. It is now a significant part of the market and mainstream giant financial institutions such as Paypal, Visa, JP Morgan, etc. They are currently offering cryptocurrency services, and more consumers are looking to purchase Bitcoin today than ever before.
In the same way, the world is witnessing BTC becoming more closely associated with institutional investors, such as Tesla, Microstrategy, etc. Many institutions are looking at converting their cash into Bitcoin or BTC to INR to protect themselves from financial crisis or profit from the conversion.
The Worth of Bitcoin
Bitcoin cannot be backed by any government agencies or central banks. It is a decentralized model that is free of any government intrusion. While Bitcoin does exhibit specific characteristics similar to a fiat currency, it is not widely available and cannot be replicated. Other factors which are driving the rise of Bitcoin are listed below.
- Demand and supply for any product play a significant part in determining its value. In the same way, Bitcoin’s supply is limited to 21 million, which provides more value to the small amount of BTCs which are still waiting to be mined.
- The halving of Bitcoin also aids in price increases. This happens once every 4 years, increasing demand and supply.
- The competition of Bitcoin is also a reason for the rise in cryptocurrency prices. In the year 2017, BTC represented a massive part of the total market value of the crypto market. By 2021, this percentage was reduced to less than 50 percent. However, it drove BTC’s price up.
Beyond 2022! Where is BTC headed?
In 2022, crypto-investors and analysts are engaged in discussions about the possibility of BTC surpassing US$80k by the close of this year. But, despite the pessimistic forecasts, the future appears to be interesting in the crypto market. In line with long-term projections, the crypto ecosystem will overtake the global financial market by 2050. According to an analysis, 29% of respondents believe that hypberbit colonization, which is the process of BTC becoming the global financial system, is expected to occur between 2035 to 2040.
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