Bitcoin remains the world’s largest cryptocurrency, and after an impressive yet turbulent couple of years, remains the most valuable. Reaching highs of $68,000 earlier on in 2021 before suffering in light of the latest developments in the ongoing pandemic, investment platforms like Bitcoin Equaliser have reported a record number of new sign-ups over the past quarter as more people than ever look to learn the ropes and get their hands on a slice of the crypto pie, as well as cashing in on falling prices towards the tail-end of the year.
As we make our way into 2022, many are wondering what the next twelve months have in store for Bitcoin, which at one point, had been predicted to exceed $100,000 before 2021 was out. Although that didn’t happen, the weeks and months ahead are looking promising according to experts, with prices set to rebound quickly after their most recent plummet.
Nigel Green, CEO of world-renowned financial advisory, asset management and fintech organisation DeVere, has been a long-time crypto advocate, and his latest prediction suggests that those who were quick to buy when prices fell could be about to be rewarded handsomely.
“The minutes from the Fed have increased expectations that the central bank of the world’s largest economy will now move faster to raise interest rates to fight soaring inflation,” he says.
“As a result, there’s been a knee-jerk sell-off on Wall Street and the crypto market, as it is perceived by some traders that such a move puts at risk the liquidity that has benefitted many asset classes, including Bitcoin.”
He continues: “However, I believe that we will see Bitcoin robustly rebound as the dust settles. This will then boost others in the crypto market.
“This is because Bitcoin and other digital currencies are widely regarded as a shield against inflation mainly due to its limited supply, which is not influenced by its price.
“In this latest inflationary period, Bitcoin has outperformed gold which, until now, has always been almost universally hailed as the ultimate inflation hedge.”
In this climate, says Green, and amid some peaks and troughs along the way “as markets never move in a straight line”, we can expect to see the price of Bitcoin and other major cryptocurrencies “revert to an upward trajectory.” In fact, the predictions for 2022 are looking pretty promising across the board, and this could be the most impressive year yet not just for Bitcoin, but for so-called ‘alt-coins’ like Ether, too.
It’s good news for investors across the globe, and Green believes that the short-term volatility we’ve seen within the market of late should be seen as advantageous, rather than a hindrance to long-term gain.
He explains: “Like many serious crypto investors, I’m embracing this short-term volatility for longer-term gains.
“I’m using the lower prices of Bitcoin and other major cryptocurrencies to top-up my portfolio. Why? Because like many major corporations, financial institutions, governments, prestigious universities, and household-name investing legends, I’m confident that digital currencies are the inevitable future of money.
“In our increasingly tech-driven, globalised world, it makes sense to hold digital, borderless, decentralised currencies. In addition, adoption and demand are increasing all the time, whilst at the same time, supply is decreasing.”
This latest slump, it seems, is nothing to be concerned about – and the savviest of investors are only too aware that in order to prosper, you must be prepared to play the long game.
“For people who are serious about building long-term wealth, this temporary volatility will be viewed as most other bouts of market turbulence: a buying opportunity,” Green concludes.
If you’ve been sitting on the fence about investing in crypto – and in particular, Bitcoin – then 2022 might just be the year to do it – and getting in there while prices remain low could stand you in good stead to end the year making profit as prices continue to recover – and then surge – long-term.
Of course, Bitcoin isn’t the only investment opportunity to keep your eye on this year, and with alt-coins like Ether also gaining momentum over recent months and surging to all time highs of their own at points, diversifying your portfolio is wise. Could this be the year we see another cryptocurrency steal Bitcoin’s crown? Only time will tell.
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.