Bitcoin: how much profit it has brought, and how much it can be worth in 2022

In January last year, according to Coinmarketrate.com, the crypto asset was worth $29,000, and has since gone up by 61%. This growth may be repeated in 2022, and experts have already begun to publish their forecasts regarding the future price of Bitcoin.

It should be noted that all analyses are based on a fundamental and technical study of the cryptocurrency. Therefore, depending on who is conducting the analysis, conclusions change, and forecasts may be incorrect (as a rule).

In other words, Bitcoin price forecasts are not an exact science, and for this reason, potential investors are advised to conduct their own research, since even God himself does not know where the Cue Ball can start its price movement. And you need to trade according to the risk they can take and the capital they can lose. You should never invest money that you are not ready to lose.

Let’s first see what prices the cryptocurrency can achieve this year, taking into account metrics and technical indicators from various platforms, and how much profit it has brought in the past.

BTC and Forecasts

Coincodex, a platform that collects information from the crypto ecosystem, shows 22 technical indicators with bearish signals and eight with bullish ones. According to the same source, the value of Bitcoin will grow by about 4%, and will reach $48,600 on February 3, 2022.

But to do this, it will have to break through the resistance level of $ 47,300, which, in turn, may be a signal for further price volatility.

On the other hand, WalletInvestor, a platform that predicts the future price of cryptocurrencies using machine learning algorithms, assumes that in a year the BTC cryptocurrency will cost $78,400, and considers it an “excellent long-term investment.”

What profit has Bitcoin brought to its investors

• In 2010, the growth of the crypto asset was 9900%: in January, it was trading at 0.003 US dollars, and then reached a historic high of 0.30 US dollars.
• In 2011, her cryptocurrency grew to $ 4.72 and brought a profit of 14.73%.
• In 2012, Bitcoin ended the year at $13.51. In percentage terms, this means an increase of 186%.
• In 2013, it reached a historic high of $758, an increase of 5507%.
• But not everything is so rosy: in 2014, the price of Bitcoin fell to $ 320, and investors lost 58%.
• In 2015, it rose again to $ 430, and gave an increase of about 35%.
• In 2016, the cryptocurrency stabilized at a level above $ 900, and as a percentage, investors made a profit of 125%.
• The next two years (2017 and 2018) were historic for Bitcoin: at that time, the cryptocurrency grew from $ 968 to $13,860 (in percentage terms, the growth was 1331%), and then fell to $3,600, that is, by 73%.
• In December 2019, the cryptocurrency was trading at the level of 7,100 US dollars, and brought a profit of 95%.
• In 2020, it reached a new historical high of $28,700, which means an increase of 301%.

In January last year, the cryptocurrency was worth $ 29,000, and in December it reached 47,900. That is, in 12 months it has given an increase of 61%.

Why the market remains “stagnant”

Cryptocurrencies Bitcoin, Ethereum and Binance Coin are falling in price. Why and what will happen in the short term?

The New year was marked by the fact that the prices of cryptocurrencies turned red. Bitcoin, the most valuable digital currency, remains above the $40,000 mark.

Ether, the cryptocurrency of the Ethereum smart contract network, is trading at $3,000.

On the other hand, the Binance exchange’s digital currency, called Binance Coin, has fallen by about 17% over the past week and is trading at around $438.

Other cryptocurrencies, such as Cardano, Solana and Avalanche, fell by 16%, 21.5% and 23.5% respectively.

” ALGO is the only cryptocurrency that has lasted the longest.

And so, why is crypto falling in price?

According to analysts of the Tradingview platform, the Bitcoin cryptocurrency is stuck above the $40,000 mark for three reasons:

1. On the one hand, trading volumes (i.e. the number of traded coins) are low.
2. On the other hand, retail investors have lost interest in the digital currency, and demand has fallen.
3. Finally, large investors (better known in the jargon as “whales” because they own a large number of assets) continue to maintain sales levels.

These three factors mean that Bitcoin is above the $40,000 mark, and will not be able to break through the $50,000 level to reach new historical highs. But this does not prevent large investors from investing even more in the military-technical complex.

Did you know that super-rich people plan to double their investments in cryptocurrencies by 2022? No?

Interest in crypto is growing

The year 2022 will undoubtedly be the year when the variable of inflation will have a significant weight in the investment choice of investors. According to a report by the investment company TIGER 21, transmitted by CNBC Markets, during 2022, super-rich people will double their investments in cryptocurrencies, which are an excellent refuge from inflation.

Although cryptocurrencies started badly in 2022, and Bitcoin, Ethereum and other coins are about 40% below their historical highs – it doesn’t matter. It doesn’t seem to affect the psychology of the richest people in terms of their intention to gain access to this new and profitable asset class.

Recall that Bitcoin and its brethren bypassed all other asset classes in 2021. With an annual return of about 65%, no other asset class in the traditional stock market has been able to compete with cryptocurrencies. This makes them a great option to protect against inflation.

Doubling the Cryptocurrency Risk

According to a report based on a survey of TIGER 21 members, about 65% of them expect inflation to accelerate during the current year. The list, which includes real estate and investments in so-called growth stocks, also includes cryptocurrencies.

So, this year, the super-rich members of TIGER 21 will double the amount they invested in cryptocurrencies in 2021. Their portfolio will consist mainly of Ethereum (34%) and Bitcoin (33%). After that, they will invest 23% in crypto funds, 15% in other coins and only 2% in Dogecoin.

Unsurprisingly, Ethereum ranks first. Many investors believe that the current second largest cryptocurrency has the potential to displace Bitcoin in the future. In their opinion, it has much greater technological value (smart contracts, dApps, DeFi, NFT and Metaverse) than Bitcoin.

However, it is important to note that the nature of the inflation hedging of cryptocurrencies is only hypothetical. Of course, they offer a fairly high return on investment, but how they respond to the Fed’s restrictive policy aimed at curbing the pace of accelerating inflation this year will be a real first test.

TIGER 21 (The Investment Group for Enhanced Results in the 21st Century) is a leading mutual learning network for wealthy investors. TIGER 21 members collectively manage US$ 50 billion in invested assets. It is unlikely that they will risk their money, so it makes sense to listen.