Bitcoin’s price could reach $200,000 in 2022, according to prominent cryptocurrency experts.
After reaching a new high this year, Bitcoin is recovering from its worst month since May. Crypto Trading has dropped 16% in the last month with many blaming the new variant of Covid-19.
However, both Brock Pierce and Tom Lee, co-founders of Fundstrat Global Advisors, believe Bitcoin will hit $200,000 in 2022.
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What you should know
In the interview with Fox, Pierce talked about BTC’s performance over the past month. He said “People like to speculate, claiming they have answers, but in truth, BTC’s market is volatile. According to him, BTC’s poor performance in December is a result of multiple events.”
Pierce stated that BTC is a risk asset. According to him, BTC is a store of value but not an inflation hedge like gold and real estate.
However, it has a more interesting return profile than the above assets. Sharing what he believes will drive BTC beyond $100,000.00, Pierce said financial uncertainty in the broader financial system.
He said, “I would not be surprised if BTC goes beyond $100,000.00. It’s conceivable for it to break $200,000 for a moment and come back again.”
He predicts that the top cryptocurrency could briefly reach the aforementioned price mark before retracing lower.
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Bitcoin’s price performance in 2022 depends on “external factors,” pointing to massive money printing that is happening in the world.
Ton Lee predicted $200,000 for BTC in the December 23 Market Rebellion Roundtable discussion.
He said: “So, maybe Bitcoin is in that $200,000 range. I think that’s achievable, and I know it sounds fantastical, but it’s very useful.”
Lee previously maintained his 2021 BTC price prediction of $100,000 as late as October in light of ProShares launching the first Bitcoin exchange-traded fund (ETF) in the United States.
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Why Bitcoin price is down
While many believe the Omicron variant of COVID-19 started and drove the current bear market, Pierce adopted a more technical approach, noting, “BTC’s price is down because there are more sellers than buyers in the market.”
He confessed that one of the reasons for BTC’s bad performance is that some investors are putting their money into other cryptos.
“Other coins snatching some attention from BTC is crucial for the market,” he argues.
Some cryptocurrencies, according to Per Pierce, are assisting in the development of the Bitcoin concept.
He explained that Bitcoin is a digital currency, whereas Ethereum aims to construct programmable contracts. Pierce compares the crypto space to the internet in 1999, because each idea is unique.