After seeing a 50% drop in price from its peak last year, Bitcoin has been down the recovery road. It has gained close to 4% in the last 24 hours and has been hovering near $37,800 at the time of writing. While it is yet to breach the crucial support level of $40,000, the Bitcoin Fear & Greed Index seems to have stabilized at 24 from 28 January.
Bitcoin Rollercoaster
Bitcoin Fear and Greed Index is 24 — Fear
Current price: $37,697 pic.twitter.com/QviO6gLvX2— Bitcoin Fear and Greed Index (@BitcoinFear) January 29, 2022
Having said that, 40% of BTC investors are not making profits off the current price levels. So, will the $100K price prediction be fulfilled
any time soon?
$100k not so soon
As per estimates by industry specialists, a recent Finder’s report note that Bitcoin can be worth $76,360 by the end of 2022. It stated,
“Bitcoin (BTC) is expected to peak at US$93,717 this year before dropping to $76,360 by the end of 2022, according to Finder’s panel of 33 fintech specialists. This is roughly 60% higher than the price of Bitcoin at the beginning of 2022.”
Therefore, $100K is not on Finder’s cards as well. Having said that, the token can breach the level over the coming years. The report further notes,
“By the end of 2025, the panel predicts BTC will be worth $192,800 and climb to $406,400 by the end of 2030.”
Furthermore, the report pointed out that the conservative predictions are on the back of potential interest rate hikes. This was also believed to be one of the contributing factors to Bitcoin’s price weakness earlier this year. We can recall that the market mayhem and low investor confidence followed Federal Reserve’s Tapering announcement during that time.
Panxora Group CEO Gavin Smith, who had an end-of-2022 prediction of $70,000, said
“[The] first half of 2022 will be dominated by concerns over higher interest rates, which will impact all risk assets including Bitcoin. We wouldn’t be surprised to see Bitcoin decline a further 30% from current levels.”
Having said that, JP Morgan has also lowered its earlier long-term price target of $150,000 for Bitcoin. Now, on the back of the asset’s volatility and market size of gold, the bank has placed the new price prediction on $38,000. JP Morgan stated,
“Our previous projection that the bitcoin to gold volatility ratio will fall to around 2x later this year seems unrealistic. Our fair value for bitcoin based on a volatility ratio of bitcoin to gold of around 4x would be 1/4th of $150,000, or $38,000.”
Meanwhile, University of East London associate professor in law Dr. Iwa Salami is seeing growth in retail and institutional interest in the crypto space. Therefore, he is making crypto a crucial asset class that “cannot be overlooked.”
With that being said, Bitcoin has indeed broken the five-week streak in terms of investment outflows. Coinshares’ weekly fund flow report noted that Bitcoin saw inflows totaling $14 million in the week ending 21 January.
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