05.05.2022

Bitcoin: forecast for 2022 – 2025

By bit.team

Especially starting from the third week of February, judging by the charts Coinmarketrate.com, the price of BTC rose and fell. Bitcoin is currently trading almost 50% below the current historical high of November 2021. But how can the price develop in the short term?

Wave analysis is a good indicator for a short- and medium-term forecast. This shows a bullish and bearish scenario.

The correction model A-B-C is already visible in the bullish scenario. Waves A and C have a ratio of 1:2, which can often be observed in such a pattern.

In a bullish scenario, Bitcoin could go through the “fourth wave of the triangle”, followed by the “final diagonal pattern”. Usually such a scenario leads to a strong upward movement. The next resistance is at just above $40,500.

In a bearish scenario, the price is also experiencing a short-term rise. This is the result of a downward movement in 5 waves. However, the resistance at $41.575 cannot be broken through in the end. Then the price drops to a much lower level.

Bitcoin chart for the year. Source: Coinmarketrate.com

Bitcoin chart for the year. Source: Coinmarketrate.com

Bitcoin price forecast using the “stock to flow” model

There are many models that can be used to predict price dynamics. For Bitcoin forecasting, the most well-known forecasting model is the stock-to-flow (S2F) PlanB model.

The whole model is based on the stock-to-flow ratio. In this model, the amount of BTC in circulation, the so-called stock, correlates with the number of Bitcoins mined annually, which are called a stream.

The higher the result of this calculation, the poorer the underlying asset. In addition, the calculation result can be used to calculate how long it will take to double the current stock at a constant flow.

In practice, this model is regularly used to evaluate assets such as gold. However, the next halving of the Bitcoin exchange rate in 2024 will help the BTC replace gold as the asset with the most stable value.

The PlanB analyst in the “Bitcoin stock-to-flow” model describes how the halving event affects the Bitcoin price movement. Based on the PlanB model, the price of BTC will exceed the magic threshold of $100,000 in 2021.

Already in 2025, we may see a price exceeding 1,000,000 US dollars. If we superimpose the Bitcoin graph on the S2F model, we will get 95% accuracy.

The forecast of the price of military-technical equipment for 2022

After all this theory, we move on to the Bitcoin price forecast for 2022.

We cannot make an unambiguous statement here. However, technical and fundamental factors can be used to express a certain expectation regarding the performance of an asset.

In our opinion, the Bitcoin price should develop positively, at least in the medium and long term.

However, the S2F model is also a reliable basis for price analysis, which is why many analysts consider a price of more than $100,000 realistic this year.

Currently, Bitcoin fully corresponds to the description of digital gold and therefore can benefit significantly from a positive market environment for cryptocurrencies.

It can also be assumed that institutional investors will contribute to the fact that strong sales in the future will be unlikely.

Most likely, numerous market participants will interpret the price drop as an opportunity to increase their positions in Bitcoin.

And so…

Now that some experts and figures have commented on the Bitcoin forecast, here is an estimate based on mathematics and algorithms:

  • Longforecast

Here is a Bitcoin forecast for a period of several years. According to calculations, the price of BTC will experience some fluctuations until 2023, but the general trend will constantly grow.

In January 2023, 1 BTC will cost up to $61,604. According to the forecast, a small correction will follow in the period from 2023 to 2024, after which a bullish growth will begin in 2024 to almost 80,000 US dollars.

According to the website Longforecast.com this trend will continue in 2025.

  • Walletinvestor

Even rather pessimistic experts Walletinvestor.com expect a significant price increase in the future.

In their opinion, in 2022, the price will rise significantly above $40,000 for most of the year. Next year, Bitcoin will test the level of about $50,000 for the first time.

This trend will continue in 2024 and 2025. Walletinvestor expects that by 2025 the price of Bitcoin will be more than $68,200.

New large investors

In the last few weeks, large investors have made several Bitcoin purchases again. First of all, MicroStrategy has once again bought BTC in the amount of 414 million US dollars.

The company announced this in November 2021. She owns the largest amount of BTC among all the listed companies.

Public companies that own Bitcoin

Public companies that own Bitcoin

Although we are not talking about buying, the developments in Grayscale Bitcoin Trust is important news for investors. The company is currently planning to convert Bitcoin Trust (GBTC) into an ETF.

If this project is successful, millions of small investors will have the opportunity to invest in BTC through ETFs. With this development, assets under management (AUM) are likely to grow.

A well-known investor and founder of Ark Invest, Katie Wood, invested a fairly large amount in Bitcoin in June 2021. At that time, Wood took advantage of the weakening prices and invested $80 million in Grayscale’s Bitcoin Trust.

The acquired shares are intended to increase the “Next Generation Internet” ETF of Ark Invest. In the past, Wood has always been successful in long-term investments.

Current Bitcoin Price forecasts from analysts

One of the most interesting forecasts for Bitcoin is provided by JP Morgan Chase. For a long time, this large bank was considered a critic of Bitcoin, but now it has taken a different position.

In its research, a major bank predicts that in the medium term, the price of BTC will reach $146,000. In addition, analyst Nikolaos Panigirtzoglu said that there will be shifts between gold and Bitcoin. This may be useful for Bitcoin and spur further price development.

However, even more exciting is the forecast recently published by Bloomberg. According to this, a Bitcoin price of 400,000 is possible as early as 2022. Experts justified the assessment of such a price development by the boom in 2017. However, many do not believe that this price can be reached in 2022.

The somewhat older, but no less “bullish” forecast of a senior analyst at a large Citibank bank. According to this, there are clear parallels between the gold market of the 1970s and the current Bitcoin market today. As a result, Thomas Fitzpatrick considers a possible price of $300,000.

But Bill Gates, though not being an expert on the crypto market, expressed his point of view about the development of the Bitcoin price.

The ex-boss of Microsoft has never hidden his attitude to the Cue Ball. Gates does not want to give exact dates or figures, but, in his opinion, sooner or later Bitcoin will be at the level of $ 0.

That is, he believes that the price will collapse and Bitcoin will crash. He justifies such a radical assessment by saying that BTC as an asset class does not produce anything that could justify an equivalent value.

Conclusion

No one can say with certainty where the Bitcoin price will go, or even collapse. The listed forecasts of experts and institutions are reasonable and understandable.

Everything is possible in the crypto sector, in all directions, in the shortest possible time, and every market participant should always take this into account in their investment behavior.

Bitcoin is not only the most important cryptocurrency on the market, but also one of the most interesting investments. In the future, this asset will play an even more important role, and its price will rise even more.