Bitcoin is the original crypto currency, and if you had to analyze the crypto market, bitcoin prices are the best indicator. If it is doing well, other cryptocurrencies are likely to be doing well. Conversely, when bitcoin is doing poorly, other cryptocurrencies also suffer.
So in this article, we will study Bitcoin and its decline and growth trajectory, how it has performed since its launch, and what lies in the future.
In this article, we will cover:
- How Bitcoin has performed over the last few years
- How Bitcoin gains its value
- What Affects Bitcoin prices
- Prediction for Bitcoin prices
- Future of bitcoin
How Bitcoin has performed over the last few years
In the first half of 2021, bitcoin enjoyed a steep rise in its market value. Its value grew from $32,000 to almost double that number by April ’22. At that time, the market was speculating a wider acceptance of bitcoin by merchants and consumer banks.
However, the speculation couldn’t see the light of the day — bitcoin, an energy-intensive and slow transaction platform coin, couldn’t support a wider audience. This generated a negative sentiment, and bitcoin was labeled a speculative and risky bet. As a result, Bitcoin saw a decline in value in the latter half of 2021; its prices head downwards with the tailing wind of the market ending 2021 at $47,300. But with further market turmoil at the beginning of 2022, it declined further and is trading at $21,717 as of July 9, 2022.
How Bitcoin gains its value
Like the stock exchange, Bitcoin gains its value from the demand and supply. The year 2021 educated many audiences about crypto because of the hype and concerns over the high electricity used to mine bitcoin. Further, China’s ban on cryptocurrency also weighed down its value.
But on the other hand, some companies like Microsoft, AT&T, Starbucks, PayPal, and Amazon warmly welcome bitcoin as a payment method, although it needs multiple jumps to pay that through crypto coins. But as more and more companies and nations make bitcoin legal, we can see a rise in its value.
Unlike regular currencies, bitcoin trades on a stock exchange, and as more and more platforms make room for bitcoin trading, Bitcoin can expand its market among individual traders and investors. However, while Coinbase, Kraken, and online investment firms like Robinhood and Webull have allowed the purchase of cryptocurrency, big traditional brokerages are yet to give the green flag to Bitcoin trading.
Suppose you are a business owner operating in any industry. In that case, you can also trade your business coin by tokenizing your business using ELM coin and list your tokens publicly to raise money through crypto tokenization.
What Affects Bitcoin prices?
Bitcoin is the gold standard of the crypto industry; unlike other altcoins, it does not depend heavily on the rest of the crypto market and usually ends up being the one to set the trend. So the main indicators of its value are whether the market is bullish or bearish.
The changes in Bitcoin price are due to significant happenings in the natural world Resource
Like any other asset, Bitcoin gets affected by — supply and demand, public sentiment, market events, and news related to it, be it about Bitcoin itself, crypto exchanges, or blockchain technology. For example, Crypto prices usually go up when information related to mass adoption, new technological breakthroughs, and so on. But, on the other hand, any uncertainty that can plummet its demands leads to a lesser value.
Prediction for Bitcoin prices
After the bull market peak and the speculations of inflation in mid-2022, the next couple of years could bring a bear market for Bitcoin, but the market bottom is expected somewhere around the former ATH of 2017, which is about $20k
Stock markets tend to rise and fall, and the Bitcoin cycle happens every four years, with each halving. With another halving ahead in 2024, the price of Bitcoin will increase once again as its supply is slashed by half. This could start another bull market and lead to a value of $500,000 or millions, per some predictions.
The massive price projections and forecasts suggest that someday, Bitcoin will replace all currencies globally. The revolutionary blockchain technology has sparked an entire crypto industry aimed at disrupting traditional finance, and they are already on their way to seeing widespread adoption by the mainstream public. Bitcoin price prediction chart outlining some of the minimum and maximum BTC price forecasts offered by technical analysts and industry experts.
Prediction chart credit – PrimeBxt
Future of Bitcoin
The future price of bitcoin depends on whether digital currencies can become valuable financial assets. There was very little support for this concept among economic decision-makers in the early days of Bitcoin, but some once-skeptical major investors have come around.
Warren Buffett, who was once very skeptical of cryptocurrency and referred to it as “rat poison squared” and swore never to touch it, has purchased NuBank, a digital “neobank” involved in the crypto space, signaling his vote of confidence in crypto coins. Likewise, tech billionaires like Lloyd Blankfein, former chairman of Goldman Sachs, and Jack Dorsey, founder of Twitter, have been prominent supporters of Bitcoin and the crypto space. Jack Dorsey even resigned from his role as CEO of Twitter to run a company, “Block,” a payment processing company that develops digital currency applications.
Adoption by these and other tech tycoons can tilt the Bitcoin prices overnight and reverse the free fall in bitcoin’s valuations.