Investors and traders who follow bitcoin (BTC) know the meaning of volatility. For that reason, they weren’t frightened by a quick drop in the crypto’s value, of nearly 20 percent, during the first ten days of December 2021. Since its earliest days, the coin has been a see-saw asset, notching new highs with regularity but experiencing considerable drops in between.
How to Make Educated Predictions
How to best assess the leading cryptocurrency’s health for the upcoming year? There are no guarantees in the world of virtual assets, so any prediction must be taken with a grain of salt. However, there are some relatively straightforward ways to evaluate the trajectory of bitcoin for the next 12 months. The best way to begin is to review how the asset behaved in 2021. After that, looking at the main factors behind bitcoin’s value in 2022 is in order. Finally, it’s important to examine three things that have played a significant role in the coin’s price during the past two years. The logical place to begin is with bitcoin’s 2021 performance, paying particular attention to its range.
A Quick Look Back at 2021
This year, in short, has seen the largest crypto take a wild ride. Prices ranged from the $29,000 level all the way up to nearly $66,000. That’s almost a $40,000 range between the annual high and low. But that incredibly vast range is not the whole story. The price of BTC hit both those extreme zones not once but twice each. The lows were touched in January and July, while the highs were achieved in April and November. Volatility like that is a lesson for anyone who wants to predict what will happen during the next 12 months.
Key Factors for 2022
What should investors focus on when studying BTC? For several reasons, it makes sense to hone in on how the global economy is doing, whether crypto assets continue to gain a following, what happens with the COVID situation, and related issues. But, the big three components that threaten to drive BTC’s price come down are not so mysterious in themselves. For anyone who wishes to engage in bitcoin trading, it’s imperative to not only follow the three main factors behind price but also to refer to authoritative resources like this site for real-time pricing, volume, and trading opportunities.
Since early 2020, when several major corporations and governments finally recognized the usefulness of BTC and other cryptos, the move toward worldwide acceptance has gained significant momentum. Today, several nations as well as thousands of corporations buy, sell, store, and trade bitcoin. One could make the argument that the coin has already broken through the acceptance barrier as millions of e-commerce websites now accept BTC as a form of ordinary payment.
COVID and the Global Economy
As soon as the COVID pandemic engulfed the world, dozens of major economies suffered catastrophic losses in terms of unemployment, business closures, and inflation. Because the virus continues to spread and morph into other variants, it appears that more traders and investors will turn to virtual currencies, not national ones, as a safe haven.