PlanB, the famous cryptocurrency analyst who became famous thanks to his often spot-on Bitcoin predictions, is still convinced that Bitcoin, despite the declines in recent weeks can reach $100,000 by the end of the year, and then aim for $200,000 and above in 2022.
Bitcoin’s predictions for 2022
PlanB recently stated:
“I imagine we’ll be above $100,000, above $135,000 by the end of the year, and then continue to grow perhaps towards the stock-to-flow X (S2FX) model target [of] $288,000 or even beyond; so I wouldn’t be surprised to see in the first-second quarter of next year a price of $300,000, $400,000 or $500,000 either.”
Although the prediction of 100k by the end seems objectively difficult to achieve, those made by several experts who see BTC prices reaching and exceeding $100,000 in the coming year certainly seem more reliable.
In September, analysts at JP Morgan even predicted that Bitcoin will reach $145,000 by the end of 2022.
In late October, when Bitcoin was firmly above $60,000, CoinList CEO Graham Jenkin predicted a price of $100,000 by February 2022.
The Bloomberg report
The Bloomberg report details why Bitcoin is expected to reach the fateful $100,000 mark next year. According to Bloomberg’s experts, this year’s corrections would have made the asset stronger and its bullish market healthier, considering Bitcoin overcame very negative news such as China’s bans, while still reaching new highs.
The report states:
“The key question facing Bitcoin nearing the onset of 2022 is whether it’s peaking or simply a consolidating bull market. The key question facing Bitcoin nearing the onset of 2022 is whether it’s peaking or simply a consolidating bull market”.
New regulation in the US will encourage adoption
The report also highlights the fact that new regulations coming to the US and other countries could encourage the adoption of Bitcoin and cryptocurrencies in general, and thus drive demand for the asset and its subsequent growth in value. And the possible decline in the stock markets could also give a boost to Bitcoin’s share price according to the report
“Bitcoin will face initial headwinds if the stock market drops, but to the extent that declining equity prices pressure bond yields and incentivize more central-bank liquidity, the crypto may come out a primary beneficiary”.
Bloomberg also notes many institutional funds are shifting some of their gold investments to Bitcoin or related instruments, reinforcing the argument that the digital currency could soon become a store of value on par with gold.