February continues to carry the ‘Red’ flag for Bitcoin
In 2022, Bitcoin just has two basic options. One to reach the US$100k mark before the end of the year and the other to undergo a massive slump and disappear in thin air. Although both are distinct extremes, these are the possible paths that Bitcoin’s price could take in 2022. However, BTC started the year on a negative note, missing the Santa Claus rally and undergoing back-to-back price plunges. While February seemed to be the light at the end of the tunnel for many investors, it didn’t turn out to be very positive so far.
BTC started 2021 with so much enthusiasm. Throughout the year, the cryptocurrency experienced rapid price increase and mass adoption across every walk of life. From Bitcoin ETF’s debut in the NYSE to major companies accepting virtual currency as a mode of payment, Bitcoin had an eventful year. Although BTC started the previous year at US$33,000, towards November, it touched a record high of US$69,000. Unfortunately, BTC price couldn’t hold on to its all-time high and fell flat quickly. BTC in 2022 seems to be a scare for many investors. Even some long-time investors are having a second thought on relying on the cryptocurrency market. The speculations on Bitcoin tumbling below US$30,000 this year are menacing the existence of the whole virtual ecosystem. At a time when everything seems uncertain, we explore what is in the bag for BTC in 2022.
Losing the Market Dominance in 2022
2021 proved that the cryptocurrency industry is more than just Bitcoin. At the beginning of the year, BTC accounted for over 70% of all cryptocurrency investments. According to CoinMarketCap data, the figure is now standing at 40%. Due to the growth of smart platforms like Ethereum. Cardano, and Solana, which are unleashing advanced features in the virtual market, cryptocurrency have lost their dominance. While more and more futuristic applications and projects are built on these platforms, cryptocurrency becomes a secondary choice for investors.
Recently, more than the actual cryptocurrency investment, other factors like NFTs, metaverse, smart contracts, and decentralized applications are gaining pace. Even though BTC is the digital gold, it will be easily outperformed by advanced platforms and newer coins.
Acceptance Across Mainstream Usage
Factually, cryptocurrency is being adopted across industries and by people at a faster rate than humans first adopted internet technology. Therefore, the increasing acceleration will keep Bitcoin and other digital tokens at the helm of growth. According to Coin Shares, cryptocurrency adoption has been increasing at an annual rate of 113% in the past few years. Although Bitcoin’s price is down recently, its acceptance is seen as an overall thing that happens throughout. If this continues to grow at the same pace, the world will encounter 1 billion cryptocurrency users by 2024 and 4 billion users by 2030.
Institutional adoption is also a much-talked subject in the cryptocurrency sphere. While Tesla is already a part of this drive, other companies like Amazon are also considering the option. If cryptocurrency reaches institutional adoption and gets to be used as a payment method, then it will create a new wave of growth in the coming days.
The Environmental Collapse will Trigger Opposition
Climate activists and country leaders have been vocal about the environmental impacts of BTC for quite some time now. But the efforts got intensified when Tesla CEO, Elon Musk, announced that the company won’t accept BTC payments owing to the environmental collapse it causes. Following this, the concept of Bitcoin mining and the energy it consumes was widely brought under the scanner. Although BTC is upgrading its underlying blockchain technology for less energy usage, the cryptocurrency will often be put at a tough spot for its nature of functioning.
When will Bitcoin Reach US$100k?
Despite the ongoing crisis, experts still opine that BTC path to reach US$100k is all set. According to a report published by Bloomberg Intelligence analyst Mike McGlone, he mentioned that BTC, Ethereum, and United States-pegged stablecoins will maintain dominance in 2022, while other toppers of 2021 like Solana and Binance Coin will lose their position in the top 5 list.
In a nutshell, Bitcoin’s price will surely break its previous record and touch US$100k in 2022. It is currently looking for a cushion to make its comeback. Although US$30,000 created a cushiony layer in January, it couldn’t help BTC to the point others expected.
February Indicates a Rare ‘Red’ Flag
Killing everybody’ expectation, BTC continues to under perform this February. At the time of writing, BTC price was at US$37,008.08. Historically, January has mostly been a positive month for ETC. In 2021, the cryptocurrency experienced 21% gains in the first month of the year. Novembers and Decembers also indicate a positive trend always. But this year, the bull run is worrying investors like never before. Therefore, the unique ‘red’ flag is moving into February as well, indicating further price falls.