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Why the Price Bitcoin Could Hit $100,000 in 2022

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Bitcoin remains the top cryptocurrency in the market. It is also the oldest having been in the market since 2009. These, among other factors, could drive Bitcoin price 2022 to hit $100,000.

Although it is currently trading at 42,000 dollars, it has previously hit a high of 67,000 dollars. This huge price volatility has investors believing it is just a matter of time before the coin hits an all-time high of $100,000.

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Although there is no exact date when this could happen, there is a likelihood towards the second half of the year.

Some critical elements could be enablers for Bitcoin to achieve this milestone. Some of these include;

Supply

Bitcoin has a hard supply cap of 21 million coins. A factor that has been of great influence in its past price movements.

Supply is a key element in the pricing of financial assets. Only 21 million bitcoins can ever exist in the market. Currently, over 19 million coins are in existence leaving less than 2 million coins to mine.

Mining is the process through which bitcoins are created. It involves solving complex algorithms that require huge computing power. Once a set criterion is achieved, the miners are awarded Bitcoins.

21 million coins is a small number to serve the total global population. Hence, an increase in demand could cause a huge price jump.

The more investors both retail and institutional investors in Bitcoin, the higher its price will grow. Since it has almost hit $70,000 before, there is optimism getting to $100,000 could happen this year.

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Regulation

Regulation is another key factor in determining the price of financial assets such as bitcoin. Normally, investors tend to keep away from assets with little regulation due to their high risks.

However, this seems to be changing for bitcoin with some countries starting to regulate the coin. Some examples include the government of El Salvador legalizing the trading and transacting with Bitcoin.

The United States government has also given go-ahead to the first Bitcoin ETF.

This is a big boost for the coin as it gives investors increased confidence in the asset. Ultimately, this is likely to cause an increase in demand resulting in growth in price.

The majority of other governments are also in the process of developing the necessary regulations with most of them expected to finalize this year.

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Increasing Inflation levels

Inflation levels have been increasing across the world since last year. With the value of fiat currencies dropping, investors are looking for cryptocurrencies as alternatives.

With Bitcoin leading the market, it has become among the highest beneficiaries of this shift. Cryptocurrencies have become relatively stable yet offer high returns.

Investors are also shifting from the traditional deflationary investment in assets such as commodities for cryptocurrencies.

As more of them come in, they could drive the price of Bitcoin to the $100,000-dollar mark

Bitcoin Price 2022

The price of Bitcoin needs a price growth of at least 250% to achieve this goal from its current status. A combination of these factors will be key if this is to happen this year.

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