It’s been a rocky start to the year for Bitcoin, but experts still say it will hit $100,000 — and that it’s more a matter of when, not if.
Bitcoin’s price continues to hover below $39,000 Wednesday, as investors wrestle with concerns over rising inflation, geopolitical tensions, and the possibility of tighter monetary policy by the U.S. Federal Reserve. The crypto market has increasingly tracked the stock market in recent months, which makes it even more intertwined with global economic factors, such as those stemming from Russia’s war in Ukraine.
Minutes from the Fed’s March meeting showed its plan to shrink its balance sheet by $95 billion each month to combat inflation. Additionally, the latest inflation report showed that consumer prices rose 8.5% in the year through March.
With no end in sight, the war, inflation, and shifting monetary policy in the U.S. will likely continue to drive more volatility in the coming weeks and months, experts say.
Bitcoin Price Predictions
It was easy to predict a $100,000 Bitcoin price late last year, coming off its latest all-time high in November. With Bitcoin’s big fall since then, the prediction game is even trickier.
The most extreme crypto skeptics say Bitcoin will tank to as low as $10,000 in 2022, but a middle ground might be to say the crypto currency can still climb to $100,000 like many experts predicted late last year — just on a slower timeline.
What Influences Bitcoin’s Price
Normal economic factors influence the price of cryptocurrency just like any other currency or investment — supply and demand, public sentiment, the news cycle, market events, scarcity, and more.
As a new and emerging asset, additional factors influence Bitcoin’s value more than the average currency or security. Here are some: