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As experts declare a crypto winter, what lies ahead for Bitcoin in 2022?

The world’s largest cryptocurrency remains the leader of the pack as 2022 gets underway.

By LLM Reporters  |  January 27, 2022
Gold bitcoin coin with a graph chart

Bitcoin has long been seen as one of the top investments for traders to make, with prices surging as high as $68,000 last year. The world’s largest cryptocurrency remains the leader of the pack as 2022 gets underway, with a record number of new investors signing up to platforms like Bitcoin Loophole in a bid to learn the ropes and start their trading journey – but as prices continue to tumble following a dip in value towards the tail end of last year, should we be concerned about what lies ahead?

Prices had originally been predicted to spike at upwards of $100,000 in December, but such is the unpredictability and volatility of the crypto market that this much-anticipated milestone was never reached. In fact, as news of the new Omicron variant made its way around the world, those who had been expecting a strong end to the year were left disappointed, with prices falling dramatically, seemingly overnight.

For those looking to make their first investment into Bitcoin and other cryptocurrencies, however, this sudden reduction in price offered a pleasing opportunity – and with prices remaining unstable as we head towards the end of January, there’s still time for latecomers to make their move.

Just as there was renewed hope that Bitcoin was about to bounce back, last week marked another collapse, falling by more than $10,000 over the last weekend. With prices dropping as low as $33,184, the crypto giant was left clinging on at less than half of its record peak in November – and such is the market leader’s influence on the crypto market as a whole, that the likes of Ether and other alt coins continue to suffer in its wake.

Cryptocurrencies such as Bitcoin use peer-to-peer technology to operate with no central authority or banks

Overall, the market is down by an eye-watering $1.5 trillion over just the past two months, sparking fears that a ‘Crypto Winter’ is underway, much like those that followed the bull markets of 2013 and 2017.

It’s not just cryptocurrencies that are falling victim to market volatility of late, with the stock market seeing similar losses of late, too. In fact, the latter has just closed on its worst week since March 2020 – when the global pandemic was in its early stages, and widespread fear had an immensely damaging impact on markets worldwide.

For savvy investors, it’s certainly a good time to buy – but those who have already plunged their fortunes into crypto may well be feeling nervous at present. Could this be the beginning of the end for Bitcoin, Ether and the like?

The good news is that experts don’t think so. It’s a pattern we’ve seen before, and overall, the long-term forecasts for crypto remain positive. Despite nations like China and Russia making moves to ban Bitcoin, others are moving in the opposite direction, with the South American nation of El Salvador adopting it as the country’s national currency. Add to that the increasing number of ways in which Bitcoin and the like can be spent outside of the crypto market, plus the growing confidence in the blockchain technologies they are underpinned by, and it’s almost inevitable that crypto will return to its upward trajectory sooner or later.

man holding bitcoin
Bitcoin’s breath-taking upward trajectory has blown away investors over the past 18 months, and despite market volatility and the occasional minor crash, it has proven to be resilient and quick to bounce back

Today, it’s possible to book luxury holidays and flights, purchase original artworks and expensive cars using crypto – something that just a few years ago, was inconceivable. The greater their usability, the greater their perceived value – and the more highly sought-after they will become. This year, we can expect to see a growing number of high-end and luxury brands and businesses jumping on board in a bid to better cater to their high-net-worth customers, and give them more choice.

And with so much untapped potential when it comes to blockchains technologies, we can expect to see some considerable developments in this field over the coming months. We’re already seeing it utilised to authenticate high-value items, like designer watches and handbags, and its fraud prevention capabilities are continuing to garner much interest.

So what’s next for Bitcoin?

The recent price drop, combined with high market volatility, could be leading to additional selling as traders and investors look to reduce risk – but long-term, we can expect to see it bounce back, and then some. The Bitcoin wave isn’t over yet, and savvy investors will take advantage of this period to capitalise on low prices while they can.

Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.