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- Bitcoin (BTC) to peak at $93,717 in 2022
- 50 per cent of panellists say BTC price won’t drop as interest rates rise
- 30 per cent think there is a cryptocurrency bubble
Sydney, Jan 27: Bitcoin (BTC) is set to hit US$90,000 this year, according to Finder.com’s latest Bitcoin Price Predictions Report.
Finder’s panel of 33 fintech, cryptocurrency and NFT specialists think BTC will peak at $93,717 in 2022 on average, before ending the year at $76,360.
Founder of Coteries Corporation, David Klinger, gave a forecast in line with the panel average, expecting BTC to peak at $100,000 in 2022 before ending the year at $70,000.
“As Bitcoin becomes more accessible through more established financial institutions and products like ETF’s it will continue to rally in the short to medium term,” he said.
Chief Product Officer at Permission, Vanessa Harris, thinks BTC will peak at a whopping $220,000 in 2022.
“Bitcoin is best positioned to be the store of value many investors will seek to weather higher inflation.”
However, CoinFlip founder Daniel Polotsky thinks BTC will peak at a much lower price of $60,000 in 2022 but would remain a popular hedge against inflation.
“The global economy is looking somewhat shaky, with inflation reaching seven per cent in the US. It is possible that the asset bubble the Fed created by keeping interest rates near zero per cent for over a decade may spill over into Bitcoin.”
One in five panellists (19 per cent) say increasing interest rates will drive BTC’s price down, while 50 per cent say it won’t and 31 per cent say they’re unsure.
Panxora Group CEO Gavin Smith thinks interest rate hikes will negatively impact BTC’s price, however he thinks any drop will be temporary.
“First half of 2022 will be dominated by concerns over higher interest rates which will impact all risk assets including bitcoin, we wouldn’t be surprised to see bitcoin decline a further 30 per cent from current levels.
“As inflation continues to rise we expect bitcoin to decouple from other risk assets in the second half of 2022 leading to a rally to new highs towards the end of the year.”
On average the panel expects BTC to jump to $192,800 by the end of 2025, before skyrocketing to $406,400 by the end of the decade.
NDAX CEO Bilal Hammoud expects a short term drop due to interest rate hikes but thinks BTC will rise to $250,000 by the end of 2025 and $500,000 by the end of 2030.
“Inflation is out of control, Bitcoin might temporarily drop as interest rates go up. In my own opinion the drop will be temporary,” he said.
Senior lecturer at the University of Canberra John Hawkins thinks BTC’s price will drop following rate hikes and remain subdued for some time. He’s also part of the 30 per cent of panellists who think the cryptocurrency market is a bubble.
“Bitcoin is a speculative bubble and higher interest rates leading to a revised attitude towards speculative investments generally may be what bursts it.”
However the majority of panellists (58 per cent), including Decred International operations lead Jonathan Zeppettini, don’t think there is a bubble.
Zeppettini said if there were a prolonged bear market, Bitcoin would be the coin to watch.
“In any protracted bear market one would expect blue chips such as Bitcoin to perform the best as money flows out from more speculative assets to what is widely regarded as a safe haven to wait out the storm.”
Overall it’s the time to buy Bitcoin, according to 61 per cent of panellists, while 29 per cent say hold and 10 per cent say sell.
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