2022 has been one wild roller coaster ride for the crypto community. Many investors and analysts affirm that the near future of crypto isn't as optimistic and may take time to recover. Apart from certain exceptions, almost all tokens are dropping. Therefore, investors need some clarification about where to invest at the moment. Instead, they are turning the direction towards safer assets.
Keeping that in mind, is Bitcoin still a good buy, or is it too late? Currently, it is down by around 70% from its ATH of over $69k. Even after this deep plummet from its ATH, is the coin still one of the most popular crypto assets? Let’s find out. Here's a look at its performance so far, along with 3 potential price scenarios of BTC in the near future.
Bitcoin's Performance So Far
There's little to elaborate on Bitcoin's price history. The coin has a long and impressive presence as one of the market's first original tokens, and much has been said and unsaid about it since its launch. However, 2022 has been a special year in particular for the coin, given the multiple massive drops it met and left both institutional and retail investors wondering about the year-end status.
We saw the first significant drop around April from its $46K mark to $28K after the Terra ecosystem collapse. BTC's market cap dropped from a whopping $900 billion to around $400 billion. This was followed closely by the FTX collapse, bringing in more damage and resulting in the current BTC market cap of roughly $320 billion.
This goes to show just how volatile the crypto scene is.
But, having said this, there are 3 potential BTC scenarios to explore. Keep in mind that these are simply predictions and are subject to change at any time. Let’s have a look!
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
3 Price Prediction Scenarios For BTC
The market is currently filled with uncertainty, but long-term projections appear good to some extent. Take it with a grain of salt and look at the three price predictions for Bitcoin.
Short-Term
The short-term projections seem much more challenging to calculate than the longer ones. However, the coin is not lacking in attracting interest, especially in the case of retail investors that continue to hold an interest in the coin.
And we're talking of significant holders such as hedge funds, pension providers, companies, and banks. Even countries have been interested, with the Central African Republic and El Salvador being the most notable ones. Apart from these, there are several prominent individuals such as Elon Musk and Micheal Saylor.
More individuals still hold interest, making us wonder if there's more space for a quicker rebound. So from a long-term perspective, the chances are high. But, short-term-wise, you may have to wait a while.
As a result, BTC's price prediction for this year may observe another coin drop before quickly rebounding but only up to $20K.
Medium-Term
The medium-term session is likely to hold more hope for the coin as things start to settle down slowly. The medium term will set a fresh foot into 2023, making many investors keen on what to expect. It may be another wild year for many crypto enthusiasts.
Even with new coins expected to launch in the new year, Bitcoins are still that one performer to keep a keen eye on. Given that it's the most experimented on, tried, and tested coin, no other coin has dethroned it.
But it's not just the coin alone. Bitcoin's technology continues to gain rapid adoption across the globe, leaving more hope for its eventual comeback. There are over 35k bitcoin ATMs globally, and this adoption is expected to increase substantially in the medium term.
Let's not forget that even merchants are increasingly using bitcoin as a mode of payment for their goods. This further contributes to the larger trend of bitcoin adoption, which has the potential to help the asset rise from the ashes once again. Moreover, bear markets are not permanent, and BTC has the potential to achieve a new high during the term.
Long-Term
When we shift the perspective to a long-term view, things begin to look far more optimistic, given you have the patience and sincerity for it. Despite its ups and downs, bitcoin has a lot going on within the crypto space. Yes, bitcoin is far from its ATH, but that leaves more room for growth.
Among all the cryptos, Bitcoin is more likely to gain more. Retailers and institutions continue to jump into the coin because it stands at a price many crypto enthusiasts will see as a solid bargain.
Among the major projects that can catapult bitcoin's price is the bitcoin ETF. It has been applied several times but faced rejection from the SEC. Hence, once regulation enters the scene, the ETF will likely get approved, boosting BTC's price, which is estimated to reach around $100K by the end of 2025.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Is It Too Late To Buy Bitcoin?
This is never an easy question to answer. But, with Bitcoin being a remarkably popular asset in the crypto market, many consider the current lower value of the coin as a profitable entry point.
This means if crypto assets go up, bitcoin will definitely lead the way in the future. So, ultimately the decision falls on whether you have hope in the market rather than purchasing bitcoin. For what it's worth, bitcoin has a history of bouncing back, so investors will likely see another significant comeback of the coin.
Read More:
Bitcoin Facts: Top 7 Surprising Facts You Didn't Know About
Top 10 Most Important Cryptocurrencies Other Than Bitcoin
Top 10 Most Promising Cryptocurrencies
Most Sustainable Cryptocurrency To Invest In
Next Cryptocurrency To Explode