Is it the right time to invest in Bitcoin?


Bitcoin Price Prediction: Detailed analysis of how Bitcoin gets its value, why is it volatile, why is it falling now, how low it will get, when will it start recovering, what is its performance track record and most importantly, is the Crash over?

Bitcoin Price Prediction for 2022 is $27,502

Bitcoin Price Prediction for 2025 is $39,385

Bitcoin Price Prediction for 2030 is $457,798

Bitcoin Price USD Live

Bitcoin Price Prediction: Expert Predictions

Bitcoin Price Prediction 2022

Bitcoin Price Prediction 2023

Bitcoin Price Prediction 2025

Bitcoin Price Prediction 2030

Is Bitcoin a Good Investment?

  • Bitcoin has delivered positive returns in 9 out of 11 years
  • 2018 was the most difficult year which also coincides with the year the Federal Reserve reduced the size of its balance sheet. During that year, Bitcoin closed 74% lower than the previous year. It took Bitcoin 3 years to recover.
  • Unlike Alts or even Ethereum, Bitcoin has been there for a fairly long time and with a record of proven performance.

While the current crash in prices would be a dampener in the short run, the long-run demand will continue to push the prices higher. Particularly so as the supply of Bitcoins being mined will fall by half in 2025, just 2 and half years from now. With reduced supply, the current volatility is likely to diminish.

Price
2021 Closing price $46,306
2020 Closing Price $28,994
2019 Closing Price $7,216
2018 Closing Price $3,740
2017 Closing price $14,156
2016 Closing Price $964
2015 Closing Price $431
2014 Closing Price $320
2013 Closing Price $754
2012 Closing Price $13.5
2011 Closing Price $4.3
2010 Closing Price $0.3

Bitcoin Forecast: Is it a good time to buy Bitcoin?

Yes, it is a good time to buy Bitcoin for long-term investors (2 to 5-year horizon) as the prices have fallen significantly. However, a few caveats

  • While there is some evidence of Bitcoin having reached the bottom for the year, it is not definitive.
  • The factors in favor include the Supply of Bitcoins to the exchanges has fallen, Whale purchases have surged, Crude Prices have fallen in the last 2 weeks and some Technicals are suggesting a Bitcoin bottom (See Video below).
  • But the Macros don’t favor Bitcoin yet. We do not have visibility on inflation or on how much more the Fed will squeeze the Liquidity.

YouTube video

Therefore, the risk of Bitcoin falling further still remains. However, the risks are lower than it was last week. An Investor willing to handle the risk of a move lower could invest now. The more prudent move would be to wait it out for another couple of weeks.

Bitcoin price prediction: Will Bitcoin Recover soon?

There are 5 reasons to claim that Bitcoin will recover sooner than later

  1. BTC has value both in terms of a store of value as well as currency for payment. It sure isn’t where Gold is or where the Dollar is at the moment but it is headed that way.
  2. Bitcoin prices are related to disposal incomes and liquidity as the willingness to try a relatively new store of value or currency goes up when there is enough liquidity. The recent fall in Bitcoin price is related to falling liquidity. Historically, liquidity improves at some point in time and hence one can say Bitcoin will recover as liquidity returns to the market
  3. Weaker holders of Bitcoin have exited over the last 7 months and some more will exit in the next few weeks. With only the strong and those who invested at these levels remaining, BTC will gradually recover
  4. Bitcoin has had a few poor years in the past and has recovered from those as well, so this is not the first crash in Bitcoin history
  5. Some compare Bitcoin to the Tulip Mania and others to the Dot Com Bust. But the fact is that the Tulip Mania and Dot Com boom lasted about 3 years each. Bitcoin has been tested repeatedly over the last 12-15 years in this modern age of computers and boom and bust cycles. So yes, the comparison is incorrect and Bitcoin will recover again.

Bitcoin Price Prediction: How many BTC Holders are in Profit?

Holders Making Money At Current Price as per IntoTheBlock

Date % of Investors making Money % of Investors Losing Money
July 1st 50% 49%
June 30th 50% 47%
May 31st 55% 40%
April 30th 58% 37%
March 31st 71% 27%

What is Bitcoin and what makes it Valuable?

  • Bitcoin is the first cryptocurrency and was built on Blockchain Technology. It uses the concept of proof of work to reward its members
  • Bitcoin uses a peer-to-peer network and does not have any central authority.
  • The Bitcoin ledger is public and any person can store it on their computer.
  • Anyone can create a Bitcoin token and can be transferred to any of the wallets however,  the owners of bitcoin addresses cannot be identified, but any Bitcoin transaction made can be accessed by anyone, anywhere.
  • There is no single ledger and anyone can store Bitcoin. The process of storing is called Mining and the ones storing are called miners.
  • No approval is required for the completion of a Bitcoin transaction. It is done by the network itself without the interference of any third-party system.
  • It is a limited Resource of 21 Million Coins of which 19.1 Million are in supply

Why is Bitcoin Valuable?

There are many who think Bitcoin is actually of zero value. However, given its limited supply and increasing usage for payment, it does have value

  • In Layman’s language, Bitcoin is like Gold hidden inside a computer network instead of a mine in Africa. The creator(s) deliberately created a limited number of them and created a whole range of difficult tasks to get them. Just like in real gold mining, Bitcoin mining becomes difficult if more people mine at the same time or as the number of Bitcoins keeps reducing. It cannot be used as ornaments, one of the big factors that drive Gold value.
  • To solve this problem, the creators designed it in the form of a currency that is authenticated via a blockchain. Over the last few years, Bitcoin has increasingly been used as an alternative to the US Dollar or other National Currencies. It is now accepted on payment by many companies around the world.
    • There are differences with the National currency as well. The value of a national currency like the Dollar is enhanced or reduced by numerous factors – The number of dollars the Federal reserve prints, how the Fed manages interest rates, the performance of the economy, and so on. However, among these, the role of a Central Bank (like the Federal Reserve) is a crucial difference with respect to Bitcoin. The Federal Reserve ensures that the Dollar does not undergo wild fluctuations in short periods of time so that households and businesses can manage their lives better. While Bitcoin enjoys the absence of central control and therefore any form of voluntary devaluation, it suffers from more volatility.

Bitcoin Price Prediction: What factors influence Bitcoin Price?

Factors that have a Positive influence on Bitcoin Price Factors that have a Negative influence on Bitcoin Price
Liquidity
Bitcoin Adoption
Inclusion in mainstream ETFs
Supply of Bitcoin from Miners (Lower)
Cost of producing a Bitcoin
Bitcoin Domination (Higher)
Inflation and higher interest rates
In-market issues like LUNA etc
Supply of Bitcoin from Miners (Higher)
Bitcoin Domination (Lower)

Quick Summary of Bitcoin’s current position in the market

  • Market Cap: $388 Billion [Rising]
  • Rank amongst all Cryptocurrencies: 1st
  • Competitors of Bitcoin: Ethereum, Gold (?), National Currencies (?)
  • Current Performance: Underperformer [Compared to Gold and National Currencies]
  • % of Holders who are currently Profitable: 50% [Steady]

BTC Price Prediction: Bitcoin Price Performance in 2022

  • Bitcoin has been one of the most valuable crypto assets but in 2022 Bitcoin along with all the cryptocurrencies is struggling. Bitcoin’s all-time high was $68,789 which it was able to hit on November 10th, 2021. Bitcoin crashed from its peak in November after the October US Inflation numbers breached the 6% level
  • Bitcoin in the very first week of January 2022 was trading at over $46K and the momentum was healthy enough to take the price over $50,000. However, by the end of January 2022, BTC was below $39,000 even as inflation rose further. Brent Crude Oil for example rose 14%.
  • Bitcoin hit almost $45,000 at the start of February 2022. February was unusual because Bitcoin gained from the Russian Invasion of Ukraine. It was initially seen as a safe haven. Bitcoin rose 20% in February
  • The month of March was highly fruitful for the entire crypto market, Bitcoin too gained a lot and the price of Bitcoin almost touched $50,000 in March. By the end of March 2022, Bitcoin was trading at over $47,000. So between December 31st, 2021 when Bitcoin closed at $46,306, it had fallen only a $1000. The lowest point was about $34k
  • Bitcoin’s price started falling from the very beginning of April 2022. BTC was trading at over $40,000 in the first week of April 2022 but by the end of April 2022, BTC was below $40,000. For the most part in May, BTC remained between $27,000 to $30,000 but June turned out to be the worst month for Bitcoin and the entire crypto market. The overall crypto market fell below $1 Trillion in June and the price of Bitcoin for the first time since December 2019, fell below $20,000. With US Inflation numbers rising and Fed increasing rates twice, Bitcoin fell by a massive 55% between April and June 18th.
  • With Oil prices cooling a little, Bitcoin rose 17% from the June 18th bottom of $17,708. However, BTC has stalled over the last 5 days with limited progress as crude oil prices have moved higher again. Bitcoin has been hovering between $19,000 and $21,000 in the last few weeks. The overall crypto market cap remains below $1 T.

So multiple factors have played a role in how the Bitcoin prices have moved this year- Sentiments that BTC will be a safe haven in case of war and a war-prone Russia will circumvent sanctions and use Bitcoin. It was then negatively impacted by inflation, crude prices, and finally interest rate hikes.

All of these factors have to improve for Bitcoin to decisively move to the previous high.

Bitcoin
Last 5 days -3.7%
YTD -57.5%
NASDAQ
Last 5 days -5.3%
YTD -30.9%
Ethereum
Last 5 days -8.8%
YTD -71.0%

Bitcoin Prediction: Will Bitcoin drop again?

There are a variety of reasons why people think Bitcoin reached the bottom last week

  • Santiment Data: The supply or BTC supply remains low suggesting many think the prices of Bitcoin will rise from higher
  • On the Macro side, Crude Oil prices have fallen by $7 over the last few weeks
Bitcoin Price Prediction and Forecast: Is it the right time to invest in Bitcoin?
Source: CNBC

However, there are numerous reasons to argue why Bitcoin prices have still not reached the bottom

  • Some analysts are arguing that given that nearly half of Bitcoin Holders are still in the money, the low of the year has not yet been reached. Bitcoin hash rate has fallen over the last 3 days suggesting that miners are not confident about Bitcoin prices
  • The economic fundamentals (Inflation primarily) have not changed yet
  • There may be more companies and cryptocurrencies that could fail in the next few weeks and months (like Luna, Celsius, 3AG ), and the Federal reserve’s rate hikes have only begun and are nowhere near where the Fed wants it to be.

So while there are reasons to believe that $17k was the bottom, there are some loose ends as well. It is best to wait for the consumer inflation report on July 13th to confirm the bottom. That data should show inflation has fallen in June 2022.

BTC Bitcoin Price Prediction: Current Outlook

Indicator Trend
Overall Outlook Positive
1.Market’s Wisdom Positive
1b. Market Data Higher
Market Cap Higher
Trading Volume Higher
1b. Technical Recommendation Buy
2. Crowd’s Wisdom Marginally Positive
2a. Crowd’s Buzz Higher
Google Search Volumes Higher
Social Media Buzz Higher
2b. Social Media Sentiment Steady

Read about Ethereum Price Prediction

Read: Cardano Price Prediction

Bitcoin Price Prediction today: Market Cap and Volume Data

Metric Value Trend
Current Market Cap $388 B Higher
Volume Traded in Terms of $ Value $30.5 B Higher

Bitcoin Price Prediction Daily: Google Search Trends

The interest level on Google for Bitcoin ishigher thanyesterday.

Read: Solana Price Prediction

Bitcoin Price USD Prediction: Social Media Buzz

LunarCrush Statistics Volume/ Rank Trend
Social Mentions 449 K Higher
Social Engagement 2.51 B Higher

Bitcoin Forecast: Social Media Sentiment

Last 7 Days Last 24 Hours Trend
Net Social Media Sentiment ($BTC) +6.3% +4.6% Steady

Bitcoin Price Prediction and Forecast: How to Invest in Bitcoins?

Getting Bitcoins has been made easier by the day. There are multiple exchanges offering Bitcoin and other cryptocurrencies currently. Hew is steps to how to get Bitcoins:

The very first step to investing in Bitcoin is to choose an Exchange. There are multiple exchanges in the market. The most popular ones are:

  1. Coinbase
  2. Binance
  3. Gemini
  4. Robinhood
  5. Venmo

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions. 

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Bitcoin Price Prediction





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