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If you want to start investing in Bitcoin, you will have to first check the projections for 2022 and beyond. Since 2020, BTC has been growing in value continually, and it achieved its all-time high price this year.

However, you shouldn’t just extrapolate the data and assume the coin will keep growing in value. You have to check the factors that boosted its price, as well as other factors that may affect the BTC price next year.

How Has Bitcoin Performed in 2021

In 2020, Elon Must strongly support the use of cryptocurrencies, hailing them as great ideas. This brought interest into Bitcoin and boosted its price significantly. At the start of 2021, Tesla announced that it has acquired $1.5 billion worth of BTC, and this quickly shot up the price of the currency to over $60,000.

Musk also announced that customers would be able to purchase Tesla vehicles with BTC. Another factor that has helped to boost the price of BTC is the fact that Coinbase, the biggest crypto exchange, went public.

What Challenges Has Bitcoin Experienced?

Although Bitcoin has had its all-time high price in 2021, it still experienced some challenges. One of these is the fact that it uses up a lot of electricity, and this can end up speeding up climate change.

Elon Musk even had to pause the purchase of Tesla vehicles with BTC because of the high energy consumption of the currency. Many suggestions have been put forward to lower the energy consumption of BTC, but none of these has been implemented properly yet.

Best Rates of Bitcoin During 2021

Bitcoin attained a price of around $65,000 in April of 2021, and this marked a massive spike of 450% over a six-month period. From then until May 10th, the price would stay above the $58,000 mark.

The price would go down significantly to around $49,000 on May 13th, when Elon Musk announced that the company would no longer accept BTC for Teslas. This was because of the high amount of energy that was being used for BTC mining.

Bitcoin Projections for 2022 According to Long Forecast

Long Forecast predicts that by January 2022, the currency will have a value of $74,656. The website predicts a mostly positive BTC price action, although there will be slight reductions in price in February and March.

By the end of the year, the currency will have grown to a value of more than $160,000. If you purchase BTC now, this website predicts that you will get a return of about 241% by the end of 2022.

Bitcoin Projections for 2022 According to Economy Watch

This platform predicts that the price of BTC will go back to the highs of $65,000 as we approach the end of 2021. According to the site, the price could have breached the all-time high price and gone over the $70,000 mark.

This website suggests that investors should hold on to the currency for the long-term since they predict that it will be worth more than $100,000 by 2025.

Bitcoin Projections for 2022 According to All Forecast

On All Forecast, experts predict that BTC will have a value of between $49,199 and $57,800 by January 2022. This will mark a 14.8% increase from the current rates.

The price is likely to rise slowly throughout the year, and by December, it will settle at a price of about $59,850.

Bitcoin Projections for 2022 According to Famous Investors

A number of investors have made predictions on the price of BTC. Although Elon Musk has influenced the cryptocurrency community significantly, he has not made any predictions on the price of the currency.

Tim Draper, the billionaire venture capitalist, still holds on to his prediction that BTC will reach $250,000 by the end of 2022 or at the start of 2023. This is in spite of the fall the currency experienced after Musk distanced himself from the currency, owing to the energy usage of the currency.

Mike Bloomberg’s Bitcoin Prediction 2022

Mike Bloomberg is also bullish on Bitcoin and has a bold prediction of $400,000 by 2022. He believes the currency will spike sharply by the end of 2021, and this will bring it closer to his predicted price.

This prediction was reported in the Crypto Outlook, a monthly publication that is owned by Bloomberg’s company. It is worth noting that the $400,000 figure was not just pulled out of a hat and was arrived at by factoring in many data points.

Other investors and companies that make useful BTC price projections include the following:

• JP Morgan
• Citibank
• Pantera Capital
• Cathy Wood (Ark Invest)

Can Bitcoin Ever Go To Zero?

Although the price of BTC fluctuates, it is highly unlikely that the currency will ever go to zero. An analysis done in 2018 by Yale economists placed the odds of BTC crashing at 0.4%. This means it is near impossible for BTC to lose its value.

The currency gets its value from consumer confidence and mathematics. It also takes a lot of energy to mine one BTC, and all subsequent coins become harder to mine.

At the moment, there are over 2 million bitcoins left to be mined, and this will bring the total number of coins in circulation to 21 million. Since the number of BTC that can be mined is finite, fewer people are worried about inflation when it comes to this currency.

At the same time, consumers are worried about the excessive money printing by governments around the world, and this is why they are likely to keep using BTC.

A Potential Bubble for Bitcoin

While excessive money printing is not a concern in the world of cryptocurrencies, Bitcoiners still have to live with the challenge of whales.

These are investors who hold on to large amounts of BTC. At the moment, three BTC addresses hold about 7.1% of all BTC in circulation. Like any other asset holders, Bitcoin whales can lower the liquidity of the cryptocurrency and increase the volatility of the market.

Like actual whales in the sea, BTC whales disrupt the market whenever they make major transactions on the network. Even if they choose to sell their assets slowly to avoid affecting prices, they will still create room for speculation among the smaller fish.

This can create price cycles that don’t have anything to do with the underlying value of the currency.

Use Trading Signals to Invest

Bitcoin was created in 2009 and in its early years, it was mostly used to transact on the dark web. However, more people have started appreciating the currency, especially since traditional financial institutions have entered the crypto markets.

Also, wealthy investors and businessmen have come out in support of Bitcoin, the most prominent being Elon Musk.

Even with knowledge of the direction of the BTC market, you will still need to figure out when you should enter the market. This is where trading signals come in. Once you sign up on XOSignals, you will receive free trade signals. You also have the option of upgrading to a VIP account.

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