The cryptocurrencies market has had another great year, with bitcoin (BTC) nearly doubling in price year-to-date, Ethereum price rising steadily, and the whole crypto market capitalization expanding from just over USD 750 billion to nearly USD 3 trillion.
Bitcoin’s price rises this year were spurred by key events such as El Salvador being the first government to make the cryptocurrency legal tender and Tesla becoming the largest firm to add Bitcoin to its balance sheet to date.
Similarly, Ethereum (ETH) saw key bullish developments this year, leading to a rise in Ethereum price, the most noteworthy of which was the execution of the EIP-1559 upgrade, which for the first time implemented a supply-reducing token burn mechanism.
The Merge is the next phase in the Ethereum 2.0 roadmap, as well as the final step in converting Ethereum to a Proof-of-Stake network. The Merge will essentially merge the present Ethereum Main net with the Beacon Chain. Simply said, Ethereum mining as we know it will come to an end (Proof-of-Work like Bitcoin). Instead, Ethereum staking will be used to achieve consensus. This is widely regarded as the next big thing and a possible enabler or Ethereum price rise. Although, how much effect it could have on Ethereum price remains to be seen.
While 2021 was a great year for the crypto market, several analysts believe 2022 will be even better. However, as is typical, there is a wide range of viewpoints. In this article, we’ll examine various predictions for Bitcoin and Ethereum price in 2022.
2022 Bitcoin Price Predictions
Bitcoin surpassed $68,000 for the first time last month, setting a new all-time high for the year. By early December, it had fallen below $46,000.
Bitcoin’s price has risen dramatically to its current high after beginning the year below $30,000 in January. Its worth varies greatly from day to day, and even from minute to minute. Bitcoin’s price has ranged between $46,000 and $58,000 this month. It hasn’t broken $50,000 since Sunday, and its lowest point this week was below $46,000.
Despite the volatility, many analysts believe Bitcoin is on its way to breaking the $100,000 barrier, though opinions differ on when this will occur. Volatility is nothing new, and it is one of the reasons why experts advise new crypto investors to proceed with caution when committing a portion of their portfolio to cryptocurrency.
According to Conservative Projections, Bitcoin is expected to hit $100,000 by 2023. However, some analysts are more positive. “The most qualified academics in the sector are projecting $100,000 Bitcoin in Q1 2022 or sooner,” says Kate Waltman, in New York, a certified public accountant specializing in cryptocurrency.
Others would rather point to a trend of increasing value over time than predict a figure and a date. Last month, Jurrien Timmer, Fidelity Investments’ director of global macro, anticipated a “very sustainable” growth in Bitcoin’s long-term value, driven by organic market activity, with the $100,000 milestone in sight.
Ethereum Price Predictions For 2022
While fiat currencies are losing their luster during a global economic downturn, cryptocurrencies are gaining traction. Ethereum, abbreviated as ETH, is the platform’s native cryptocurrency and one of the most prestigious crypto assets. Algorithms and science-backed cryptocurrencies appear to be controlling the blockchain world, with decentralized finance (DeFi) becoming the talk of the town.
They not only have smart contract capability, but they also provide a safe and secure transaction and trading system without the use of intermediaries. Ethereum is an innovative blockchain project created by Vitalik Buterin that is most popular among cryptocurrency enthusiasts because of its nodal position in the world of cryptocurrencies.
With the continued adoption of the blockchain for Apps and NFTs, prominent traders and investors predict Ethereum price to rise in the long run. In October, billionaire investor Mark Cuban tweeted that he believes Ethereum has greater potential for growth than Bitcoin.
According to Wallet Investor’s Ethereum price projection, ether might grow to $4,239.55 by the beginning of 2022. However, the algorithm-based forecasting site remained upbeat about the coin’s prospects in 2022, predicting it will surpass the previous all-time high of $7,263.3. According to Wallet Investor, the price might hit $10,000 in November 2023 and $16,402.2 by the end of 2025.
Similarly, Digital Coin’s Ethereum price projection for 2022 was positive, projecting a price of $6,691.35 next year. In the long run, the site’s projections based on past data suggested that ETH might grow to an average of $11,578.11 in 2025 and $16,792.81 in 2028. It’s difficult to precisely anticipate what a coin’s price will be in a few hours and even more difficult to make long-term estimations. As a result, experts and algorithm-based forecasts can and do make mistakes.