Bitcoin needs no introduction, as this disruptive cryptocurrency was the first to break down doors within the sector. Over the past few years, the coin’s rise has been exponential, paving the way for hundreds (or even thousands) of altcoins and crypto projects to carve out a niche within the broader market.
This guide will discuss our Bitcoin price prediction for both the short and long term, touching on the coin’s utility, its future potential, and where you can invest in BTC today – with low trading fees.
Bitcoin Price Prediction 2022
At the time of writing, the Bitcoin price today is hovering around the $31,500 level, following a sustained downtrend over the past few months. To help provide an overview of BTC’s long-term outlook, presented below is our price forecast for the years ahead:
- End of 2022 – Bitcoin’s value has dropped by around 50% in the past two months, driven by the market’s prevailing ‘risk-off’ sentiment. However, BTC has rejected the $20,000 level on the daily timeframe – meaning we could see a return to the $32,000 region if any bullish momentum is sustained.
- End of 2023 – Once the Bitcoin stock price begins a bull run, it can sustain itself for a period of weeks (or even months). Thus, assuming the momentum continues, we could see BTC return to the $69,000 level by the end of 2023.
- End of 2025 – Over the coming years, although some of the best altcoins may develop better utility than Bitcoin, this cryptocurrency should retain its ranking due to its ‘first mover’ status. Due to this, our Bitcoin forecast estimates the coin could reach a value of $80,000 by the end of 2025.
- End of 2030 – With the rate of crypto adoption showing no signs of slowing, there’s scope for BTC to become more widely accepted by merchants when it comes to paying for goods and services. Should this occur, there’s undoubtedly scope that Bitcoin could surpass the $100,000 level and reach $120,000 by 2030.
Bitcoin Price History
As the first cryptocurrency to hit the mainstream, Bitcoin has broken down many walls in the space and created a pathway for other projects to flourish. Although BTC was thought of as the ‘best’ crypto for a long time, other coins have sprung up that possess appealing use cases that have taken the attention away from Bitcoin. However, many investors still look to buy Bitcoin due to its value potential and low volatility relative to other coins.
In its most basic sense, Bitcoin is a decentralized peer-to-peer (P2P) digital currency that verifies transactions through blockchain technology. This technology is widely used in today’s cryptocurrency market, but back in 2009, when BTC was launched, the concept was alien to most industries.
Bitcoin’s creator, Satoshi Nakamoto, has remained anonymous since publishing his famous whitepaper in 2008, in which he detailed the specifics of how Bitcoin would function. BTC’s first-ever block was mined in early 2009, and the coin immediately began picking up traction from tech-savvy students and programmers. Nakamoto then handed over control of the code to another developer in 2010 and has not been seen or heard from since.
The first recorded BTC price was in July 2010, when the coin began trading at $0.0008. Investors looking to buy cryptocurrency and gain exposure to this new technology helped drive Bitcoin’s price over the following years, seeing BTC’s price hit $250 in 2013. However, it wasn’t until mid-2017 that Bitcoin really entered the mainstream.
The price of Bitcoin rose a staggering 2,300% throughout the latter half of 2017, breaching the $19,000 level. A sustained bear market followed this high, which saw Bitcoin lose around 85% of its value. A few sporadic bullish spikes were dotted around during this time frame, although the real movement began in late 2020.
From September 2020 until April 2021, Bitcoin rose by over 540%, hitting a high of $64,700. After a short pullback, the price surged once more, reaching an all-time high of $68,789, according to CoinMarketCap. However, this high was fleeting, and the price of Bitcoin has dropped by over 70% at the time of writing in mid 2022.
Before we dive into our Bitcoin price prediction, here’s a brief overview of the point discussed thus far:
- Satoshi Nakamoto published his Bitcoin whitepaper in October 2008.
- Bitcoin’s open-source code was officially released in January 2009.
- Bitcoin’s first recorded price was $0.0008 in July 2010.
- Bitcoin hit a high of $19,000 in 2017.
- Following this high, BTC goes on an extended bear run and loses 85% of its value.
- Bitcoin recovers and hits an all-time high of $68,789 in November 2021.
Bitcoin Price Prediction 2022
Bitcoin has been viewed as one of the best long term crypto investments for years due to the coin’s ‘first-mover’ status within the market. However, as touched on earlier, the Bitcoin crypto price has dropped significantly from November 2021’s all-time highs. Given this fact, what does the remainder of 2022 hold for Bitcoin?
One of the main things going in Bitcoin’s favour is its relatively solid standing within the crypto market. This reputation is not only driven by retail investor interest but also interest from institutional investors. Many well-known companies now hold BTC in their investment portfolios to gain exposure to the cryptocurrency sector.
A recent article from Yahoo Finance noted that asset managers held more than $70 billion worth of BTC in late 2021. At the time, this equated to nearly 8% of the coin’s circulating supply. The largest holder is Grayscale Investments, which issues a tradeable Bitcoin fund called Grayscale Bitcoin Trust.
Even though the current Bitcoin price isn’t as high as it once was, many high net worth individuals also hold BTC. These include Changpeng Zhao, the founder of Binance, along with the Winklevoss Twins, Michael Saylor, Elon Musk, and more. There are also likely to be many more high-profile names who have purchased Bitcoin yet choose to remain out of the limelight.
Given this attention from industry-leading professionals and financial institutions, we’ll likely see Bitcoin regain some of its footing within the crypto market in the coming months. The amount of money invested in BTC should see the coin continue to dominate in terms of market cap, providing a platform for a rebound. Due to this, our Bitcoin price prediction 2022 sees the coin return to the $32,000 level by the end of the year.
Bitcoin Price Prediction 2023
Looking further ahead, what does our BTC price prediction look like for 2023? As noted earlier, numerous altcoins have launched over the past few years that look to capitalize on Bitcoin’s success. Many of these altcoins have been dubbed ‘superior’ to BTC in terms of speed and scalability.
In an objective sense, this does appear to be true. Ethereum is seen by many as the best cryptocurrency to invest in since it uses blockchain technology in a more innovative way than Bitcoin. Furthermore, other networks have also begun moving away from Bitcoin’s ‘Proof-of-Work’ (PoW) consensus to a ‘Proof-of-Stake’ (PoS) algorithm, which is much more scalable and environmentally friendly.
However, even though Bitcoin’s technology may be becoming outdated, the coin is still growing its adoption throughout the world as a payment method. As reported by Reuters, nearly 25% of small businesses in nine leading countries intend to begin accepting digital currencies as a payment method in 2022. Due to Bitcoin’s pervasiveness, there’s a good chance that BTC will be the coin of choice for these businesses.
Bitcoin ATMs have also become a popular concept, allowing users to deposit cash and purchase BTC (or other cryptocurrencies) using a physical kiosk. The bought crypto is then sent to the user’s crypto wallet via QR code, providing a quick and easy way to purchase digital currencies. According to reports, there are now over 30,000 Bitcoin ATMs worldwide.
These elements highlight just how widely-used BTC is, even though other coins may have the upper hand when it comes to real-world use cases and scalability. This pervasiveness should help the currency continue growing over time, which is why our Bitcoin price prediction 2023 estimates the coin could be worth $69,000 by this point.
Bitcoin Price Forecast Long Term Outlook – 2025 Prediction
At the time of writing, Bitcoin’s sustained downtrend has prompted many to speculate that it could be one of the most undervalued cryptos on the market. This is because, when it comes to crypto adoption from institutional investors, Bitcoin remains the most ‘viable’ option due to its market cap and relatively low volatility.
One of the most significant changes that could impact BTC’s price in the years ahead is the long-awaited release of a Bitcoin spot ETF. Although there are now numerous Bitcoin futures ETFs, all proposals for a spot ETF have been thrown out by the SEC. Their main concern is market manipulation potential, as the crypto market is still relatively unregulated.
However, the previous rejections of spot ETF applications have not deterred financial firms from continuing to try their luck. Grayscale Investments continues to try and persuade the SEC that now is the time for them to allow these types of investments, whilst other companies (such as Cathie Wood’s ARK Invest) have recently filed applications. If one of these ETFs were allowed to launch, it would provide direct exposure to Bitcoin’s price.
It seems like it’s only a matter of time before a spot Bitcoin ETF is made available, significantly increasing the accessibility of BTC investing for a considerable number of traders. With that in mind, our Bitcoin price prediction 2025 estimates that BTC could reach a valuation of $80,000 by the end of that year.
Bitcoin Price Prediction 2030
Finally, let’s touch on our Bitcoin price prediction over the long term. As you’ll know by now, Bitcoin retains enormous support from both the crypto market and the traditional market. No other coin has this universal support, which is a plus point for BTC’s long-term potential.
Bitcoin’s price will likely be driven by a combination of real-world use cases and speculation. All of the best crypto exchanges offer BTC as a tradable asset, making it easy for beginner investors to get their hands on the coin. In addition, many other platforms (such as PayPal and Cash App) have now offered Bitcoin investing – increasing accessibility even more.
What is Bitcoin Used For?
Deemed by many to be the best crypto to buy Reddit, Bitcoin remains a favourite of retail and professional investors alike. Let’s explore this further by touching on Bitcoin’s central use cases:
Method of Payment
Bitcoin’s primary use case is as a method of payment. Since Bitcoin’s network is entirely decentralized, payments can be made in a near-anonymous manner. The only publicly viewable information is the wallet addresses involved in a BTC transaction.
Furthermore, Bitcoin does not accrue any banking fees traditionally associated with international transfers. Transfers are often much faster since they do not need to be authorized by a centralized authority.
Due to Bitcoin’s ‘Proof-of-Work’ consensus, advanced computer hardware is necessary to validate the transactions that occur on the network. In return for providing this hardware, ‘miners’ are rewarded in BTC.
Bitcoin miners receive a reward of 6.25 whenever they successfully add a block to the blockchain. At the time of writing, this equates to over $197,000 – highlighting how lucrative this process can be for those who possess the required computing power.
Finally, Bitcoin is also widely-used from an investment perspective, as discussed earlier in this article. The concept of cryptocurrency investing is still relatively new compared to equities and bonds, yet the adoption rate is increasing every year.
It is not uncommon for Bitcoin to generate double-digit returns within a single day, which is rare in the equity market, as investors who buy stocks will attest to. BTC is also great for diversification, as it is highly resilient in times of market turmoil, such as during the COVID-19 pandemic.
What Drives the Price of Bitcoin?
Like other asset classes, such as equities and ETFs, Bitcoin’s price is driven by supply and demand forces. But what actually affects these forces? Let’s take a closer look at this question:
Social Media Attention
Social media has become a widely-used resource for cryptocurrency traders to learn more about specific projects. However, Bitcoin remains the most talked-about digital currency on many platforms – and has over 4.3 million members on its official subreddit. Due to this, whenever the ‘hype’ picks up on social media, it tends to lead to more investment from retail traders, which results in price increases.
Growth in Crypto Adoption
Naturally, the more use cases Bitcoin has, the greater the demand for the currency. As we know from the laws of supply and demand, when demand increases, the price also increases (assuming supply remains the same or decreases).
Therefore, concepts like Bitcoin ATMs have greatly helped bring BTC into the mainstream – even for people who don’t fully understand the technology. Bitcoin is now accepted as a payment method by retailers worldwide since it is often cheaper to transact and more transparent than FIAT currencies.
Finally, the level of institutional investment is something that can affect Bitcoin’s price. Naturally, if major investment banks were to invest in BTC, this would be a bullish signal to the rest of the market. This has already begun to happy, with banks like Barclays and Citigroup already making BTC investments.
This also ties into the anticipated spot Bitcoin ETF, which many hope will appear in the next few years. An ETF like this would enable a new demographic to gain exposure to Bitcoin’s price fluctuations without dealing with the intricacies of crypto trading (e.g. wallets, blockchain technology, etc.). In turn, this would help raise Bitcoin’s visibility and positively affect its price.