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. Now, as we head towards the end of the year, experts are predicting that the original cryptocurrency could be about to exceed all expectations, and in 2022, we could be about to see it double in price.
Earlier this month, it was reported that Nigel Green, CEO and founder of the DeVere Group – one of the world’s largest financial advisory, asset management and fin tech organisations – believed we would see the numbers soar beyond $100,000 before the year was out, but now, it seems that it’s just the beginning of what this increasingly highly sought-after digital asset has in store for us as we head into the new year.
In light of the latest predictions, we can expect to see many would-be investors making it their new year’s resolution to learn the ropes and get in on the Bitcoin action. With platforms and trading software like Bitcoin Revolution now making it simpler than ever for even the most experienced to get started – and to trade Bitcoin using automated systems and signalling to increase their levels of success – we’re likely to see an increasing number of Gen Z-ers looking to join the surge of Gen Y-ers and millennials already riding the crypto wave.
Just last week, we saw Bitcoin’s value take a hit, falling eight per cent on Friday in light of the discovery of new Covid variant Omicron, and seasoned investors know that with such impressive potential growth on the cards, now is the perfect time to pounce. Presenting a major buying opportunity amongst investors, should projections prove correct then those who add Bitcoin to their portfolio now or who increase their current investment could stand to see it double in value over the next 12 months, potentially resulting in some eye-watering profits for those with sizeable fortunes poured into this ground-breaking digital asset.
The world’s largest cryptocurrency is now down 20 per cent from an all-time high of nearly $69,000, which it hit earlier this month.
“The discovery of a new Covid variant has rattled global stock markets as it brings in a new wave of uncertainty – which they hate,” says Mr. Green.
“The crypto markets have mirrored the reaction of other financial markets. This underscores how mainstream digital assets have now become, as an increasing number of institutional investors have piled into Bitcoin this year.
“But for this reason, when they temporarily reduce exposure to most risk-on assets, despite the longer-term outlook, they also do the same with Bitcoin. In turn, due to Bitcoin’s mammoth market share, it weighs down the entire crypto sector.”
He continues: “However, I think this a knee-jerk reaction from the crypto market. It will move on from this relatively quickly as it did with the Delta variant in the summer.
“Why? Partly, because now we have more of a roadmap of how to deal with variants. But importantly because amongst retail investors it is increasingly regarded as a safe haven asset, similar to gold.”
Bitcoin is often referred to as ‘digital gold’ because, like the precious metal, it is a medium of exchange, a unit of account, non-sovereign, decentralised, scarce, and a store of value.
“In addition, investors will once again focus on heightening global inflation fears caused by lingering supply-side issues,” says the deVere CEO.
“As such, amid some peaks and troughs along the way as markets never move in a straight line with traders taking profit, we can expect to see the price of Bitcoin and other major cryptocurrencies continue their upwards trajectory.”
Bitcoin is widely regarded as a shield against inflation mainly because of its limited supply, which is not influenced by its price.
“This ‘inflation shield’ will continue to bring to the crypto market growing investment from major institutional investors, bringing with them capital, expertise and reputational pull – and further driving up prices.”
“This dip in cryptocurrencies – which are, of course, the inevitable future of money, will be used by savvy investors as a major buying opportunity, topping up their portfolios with the current lower entry points.”
He concludes: “Bitcoin is unstoppable, and I fully expect to see prices double over the next 12 months.”
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