Crypto market prices may remain battered, however, there has been a seismic shift in the integration of cryptocurrencies into the payment sector and institutional investment portfolios. The original cryptocurrency might still be shedding its “unstable investment” reputation, but for those in the know, there is no doubt that the prices will return to what they were pre-crypto winter, and then some.
While investing in Bitcoin isn’t for everyone, for those interested, now is an excellent time to enter the market due to the low price points. In this article, we explore whether it’s too late to buy Bitcoin and whether it’s the right investment for you by looking at its history of price movements, the current market condition and taking a look at where it might be going.
The History of Bitcoin’s Price Performance
Bitcoin is the first cryptocurrency to launch and remains the biggest cryptocurrency to date with its sizable market cap. Launched in 2009, it started trading at roughly $0.0009 among developers and tech insiders. Following the first halving event in 2012 (notorious for instigating bull runs), the price jumped from $100 to $1,150 in 2013.
In 2014, the price fell somewhat, only to recover in 2015 and 2016, gradually increasing from $200 to $600. After another halving event in 2016, the Bitcoin price increased 933% in less than six months and went on to reach another all-time high of $19,735. This period saw a new wave of investors entering the market as the adoption net grew bigger. A year later, the price had fallen to $3,270.
In the typical cyclical nature of the digital currency, by July 2019 the price was back up to $12,139. Impacted by the pandemic, Bitcoin’s price reached lows of $5,200 shortly before the third halving event in 2020. Following an unbelievable year of price gains and institutional investment, the Bitcoin price soared to its current all-time high of $68,789.63 in November 2021.
A year later, the cryptocurrency experienced lows of $15,800. At the time of writing, in early January 2023, Bitcoin was trading around $17,400. The next halving event is due to take place in March 2024. While the history of Bitcoin’s price movements cannot determine what the future will hold, they do offer an insight into its cyclical rhythms and potential price movements in the future.
Bitcoin’s Price Performance Year-To-Date (2022)
Originally celebrated for being entirely independent of “traditional” markets, Bitcoin was heavily affected by macroeconomic factors this year. From the soaring inflation rates around the world to fears over an impending recession to Russia’s invasion of Ukraine, the cryptocurrency markets took a beating.
As investors took their money out of crypto and into more traditional markets, the price gradually plummeted over the course of the year. This coupled with several high-profile cryptocurrency companies going bankrupt created a dark period of dwindling price movements.
Despite being in the midst of a crypto winter, Bitcoin still remains one of the top investments of the decade, having officially been named the best-performing asset of the decade in 2021 due to returns within its timeframe of existence.
What Are Industry Insiders Predicting?
Based on technical analysis, conservative predictions forecast the cryptocurrency will be worth $23,000 by the end of this year, reaching $35,000 by the end of 2024. If adoption continues on a positive trajectory, this could place the Bitcoin price at $60,000 in 2025 and $90,000 by the end of the decade.
On a more bullish note, venture capitalist, Tim Draper, believes the Bitcoin price could reach $250,000 by the end of the year. Backing his quarter-of-a-million-dollar milestone he mentioned the upcoming halving as well as the obvious gender gap, “My assumption is that since women control 80% of retail spending and only 1 in 7 Bitcoin wallets are currently held by women that the dam is about to break.”
Professor of finance at Sussex University, Carol Alexander, predicts the price could reach $30,000 by the end of Q1 and $50,000 by the end of the year. Her prediction centers around it being a “managed bull market in 2023, not a bubble.” Her forecast for 2022 was $10,000, which wasn’t terribly far off from reality.
On a more bearish front, Standard Chartered, a bank operating in the United Kingdom, anticipates that the Bitcoin price will fall to $5,000 in the coming year. The bank’s head of research stated that “More and more crypto firms and exchanges find themselves with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets.”
Ultimately, Is It Too Late To Buy Bitcoin?
The unanimous answer is no, it is never too late. The dip also presents a perfect time to get into the market, something to consider. While the price might still seem “high”, remember that the digital currency is divisible by 100 million, allowing anyone to buy a small portion as opposed to having to buy one full Bitcoin. Through Oobit, users can buy as little as $20 with a payment option of their choice.
With insiders predicting another surge in price, we have long since moved on from the myth that Bitcoin is just a bubble and instead entered a new phase of adoption, one supported by large firms and a growing crypto payment sector. Another reason why it is not too late to invest in Bitcoin circles around the fact that it has a limited supply (and scarcity is notorious for driving prices higher).
Due to the way in which it was designed, there will only ever be 21 million coins created, and at present, 19.2 million are in circulation (92%). While the last Bitcoin is expected to be mined in 2140 giving anyone ample time to invest, consider doing it before the price enters a new trading bracket.
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