Bitcoin saw a bearish week-end close as its price fell below $40,000. Although the benchmark cryptocurrency has seen low volatility over the last week, the price fell further below $40,000. The market may see even more activity as the monthly close nears.
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Bitcoin is trading at $38,900 as of the writing. There has been a loss of 2% in the 24 hours since the previous post.
The short-term market sentiment is turning bearish, with market participants expecting more negative price action. The long-term trends opposite and market participants seem more optimistic about BTC’s future performance.
Finder recently conducted a survey asking 35 experts in the industry about their expectations regarding Bitcoin’s price by year end. According to the results, $65,000 was the market capitalization of Bitcoin’s first cryptocurrency.
In addition, the experts expect BTC’s price to continue its multi-decade long rally to $179,000 by 2025 and over $400,000 by 2030. Below are the long-term predictions for crypto currency.
As noted by Find, the panel changed their short-term views for BTC’s price. In January, the same survey was done and experts forecast that Bitcoin would reach a record high of $75,000 at the end 2022.
The experts have different opinions on BTC’s short-term performance. Experts believe Bitcoin will remain stable for 2022.
Bitcoin may therefore remain between $30,000 and $50,000, which could frustrate market expectations. Bulls anticipate new highs, or at minimum a return of $60,000; bears predict it will fall below $30,000.
BTC is known for moving in the opposite direction of what majority wants. One of the more pessimistic experts Dimitrios Salampasis, FinTech lecturer at Swinburne University of Technology, believes BTC’s price could be negatively impacted by the energy consumption narrative in the short term. Salampasis said:
(…) the conversations around the environmental impact of mining may lead to blanket bans of crypto mining activities, which could additionally contribute to Bitcoin scarcity and the increased prices as a store of value. Bitcoin can be used to hedge against fluctuations in fiat currencies.
Bitcoin Will See Increased Demand as People Lose Faith in Central Banking
In that sense, most of Finder’s expert panel believes BTC will be replaced as the number one crypto in terms of popularity. Most aim at Ethereum taking over as it becomes more “energy-efficient” if it can migrate to a Proof-of-Stake (PoS) consensus.
This is evident in the chart below. 50% expect this outcome, while only 12% said they weren’t sure. Many experts think Ethereum will dominate due to its numerous use cases. Others believe it will because of its interoperability and other features.
According to optimistic experts, Bitcoin could reach $100,000 in value by the end of this year because people are losing faith in governments and central banking. To hedge against legacy financial systems, Bitcoin could be used as a decentralized currency.
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Ben Ritchie is the managing director at Digital Capital Management.
Increasingly, ‘trust’ is becoming a central consideration for investors – can we trust the economic system and the power brokers driving it? Bitcoin, which is emerging as a viable solution to the uncharted economy, has replaced trust. Placing ‘trust’ in code and mathematics, with no intervention, has significant global appeal.
