Though Bitcoin was soaring at the heights of its value in November 2021, 2022 was a different story altogether. Bitcoin crashed significantly, leaving investors and enthusiasts both shocked and out of pocket.
But have we reached the end of this harrowing ordeal, or can things still get worse for Bitcoin? Just how low can Bitcoin go in 2022?
Bitcoin's Previous Fall
Though Bitcoin did crash in January 2022, its May 2022 crash was more severe. The crypto market crashed as a result of various factors, including a depressed traditional stock market, rampant inflation, and rising energy costs worldwide. But many cryptocurrencies still haven't been able to recover from this, including Bitcoin. Between April and May 2022, Bitcoin lost over $10,000 in value and has continued to fall ever since. At the time of writing, it sits just above $20,000, though it has dropped below this mark multiple times already.
Though $20,000 is by no means a small number, Bitcoin is currently sitting at its lowest price point since 2020, before the crypto boom took place. This is why investors are now so concerned, as there's no knowing how long the crypto bear market will go on. So, what's the trajectory looking like? Will Bitcoin's future price be any higher than it is now, and if not, how low can it go?
Bitcoin's 2022 Trajectory
As is the case with most cryptocurrencies, there's no way of knowing for sure how Bitcoin's price will change in the coming months. Unfortunately, all we can do is predict. So, what's the general price forecast for Bitcoin?
This is where things go from one extreme to the next. On one hand, some experts state that Bitcoin could make a miraculous recovery, while others are sure of Bitcoin's demise. For example, Changelly predicts that Bitcoin could reach a maximum price of $41,180.91 this year, which would certainly be a spot of good news for investors. Some even go so far as to say it could go beyond this, but it's important to note that this can sometimes stem from wishful thinking more than anything else.
Now, let's look at the less exciting side of things. While it's essentially impossible for Bitcoin to hit zero this year, or any time soon, critics talking to Time have stated that it could go as low as $10,000 over the next few months. Again, $10,000 is no small amount, but relative to what Bitcoin has been worth, this would be very bad news, causing even more financial damage to investors who have already lost out big time. However, some believe that this all-time low will be followed by an eventual comeback.
Bitcoin's Price Trajectory Will Always Remain Uncertain
You may be thinking that the predictions for Bitcoin's price discussed here are a little all over the place, and that's absolutely true. Because Bitcoin is virtual and isn't backed by any kind of reserve, its price relies on a number of varying factors. This, unfortunately, makes it impossible to create a concrete Bitcoin price forecast. We can only hope that the market recovers in the wake of this shocking crash, but nothing is ever certain in the crypto game.