In the past decade, Bitcoin is the only cryptocurrency that has consistently managed to stay at the top of the most popular and valued cryptocurrencies list. But with the introduction of altcoins, things have slowly started to change. Investors are now looking for more crypto options that can give them higher returns on their investments. Take Ethereum, for example. It is the top altcoin, next just to Bitcoin that commands an impressive market capitalization, demand, popularity, and value.
Ethereum price has been ruling the charts, and it has managed to take a bit of investors’ attention away from Bitcoin. But does it mean Bitcoin’s era is over? Well, the answer is No. Even though Ethereum and other altcoins are trying to catch up to Bitcoin and influence its price, Bitcoin has managed to hold its position at the top, most famous cryptocurrency worldwide. So how does it impact Bitcoin’s price? What will be Bitcoin’s price this calendar year and beyond? If you’re here to know the answer, read till the end.
Bitcoin is Taking a Bearish Turn from it’s All-time High Value
If you pay a close watch at Bitcoin’s price, you would have noticed how its price fluctuated through 2021. After starting the last year at approximately $28,994.01, Bitcoin reached its all-time high during November at around $68,789.63. But this high valuation couldn’t last long, and the price came crashing down to $46,306.45 (approx) by the closing of the year. If the price trends of 2022 are to be seen, it will be reasonably early to predict anything since the year has just started, and we’re three months into the new year.
However, the current pricing trend shows Bitcoin is finding it challenging to stay above the $40,000 mark. It reached $33,184.06 in and around January 2022 and later went to $38,431.38 on around 20th February 2022. According to a crypto analyst, the crypto and equity market were highly correlated in 2021. The correlation for the past year is expected to be 0.25. And for 2022, the correlation between the returns of Bitcoin and the S&P 500 Index has been 0.56 to 0.61. The correlation talked about depends significantly on the source and measure.
Bitcoin Price Analysis Every Investor Needs to Read
Bitcoin has been the largest, most prominent cryptocurrency in terms of market capitalization, and it continues to retain its spot. But the introduction of altcoins has definitely reduced Bitcoin’s market share in the crypto world. According to the Sentiment, a behavior analytics platform, Bitcoin could be a tentative buy on the current dip. As investors, you have the option to either convert BTC to INR and cash out or retain it for the long term in anticipation of higher profits.
Some analysts at Santiment further said that within an hour or so of Bitcoin raking %50 million in profit on 20th February, the prices dropped heavily, triggering two major negative spikes that totaled around $43 million in losses. The negative spikes were most likely caused by panic, doubt, uncertainty, and fear. While panic selling could mean a good time to buy, existing Bitcoin owners should exercise caution while selling it off. The moving average of Bitcoin has been displaying lose support at around $37,000. What is worth noticing is that from the beginning of 2021, Bitcoin’s price has not wandered more than 5% below the MA30 line.
Bitcoin Price Forecasts by Experts
If predictions by Wallet Investor, an online algorithm-based forecaster, are to be believed that Bitcoin is expected to go all bullish in 2022 and beyond. They expect Bitcoin to cross the $59,000 mark by the end of this calendar year. Going ahead this year, Wallet Investors predicts Bitcoin can surpass the $70,000 mark in and around April next year and even cross the $86,464.40 mark by the end of 2023. Though other experts are also hopeful of Bitcoin’s price in the near future, you should always conduct your own research before making any trading decision.
