What Might Happen to Bitcoin in 2022

Bitcoin is one of the most cryptocurrencies in the world, so it is not surprising that people are constantly monitoring its price. Bitcoin is up nearly 70% since the start of 2021 as of December 22. In 2021, the first major crypto company Coinbase went public.

Still, heightened regulatory scrutiny, as well as intense price fluctuations, dampened Bitcoin’s prospects lately. Let’s have a look at several scenarios regarding Bitcoin and its price in 2022.

For example, some experts believe it is due for a sharp decline in the next several months. Bitcoin’s price jumped to a record high of almost $69,000 in November. Importantly, Wall Street wisdom defines bear markets as a decline of 20% or more from recent highs. But we should not forget that Bitcoin is famous for its volatility.

Carol Alexander from Sussex University expressed her opinion regarding Bitcoin’s price. Alexander expects Bitcoin to drop to as low as $10,000 in 2022, virtually wiping out all of its gains in the past year and a half. She warned of history repeating itself. Several years ago, more precisely in 2018, Bitcoin fell close to $3,000. Its price tumbled close to $3,000 after climbing to a high of nearly $20,000 several months earlier.

Bitcoin exchange-traded fund in the United States

A serious development investors are on the lookout for in 2022 is the approval of the first spot Bitcoin exchange-traded fund (ETF) in the U.S.

This year, the Securities and Exchange Commission greenlighted the launch of ProShares’ Bitcoin Strategy ETF. Notably, the product track Bitcoin futures contracts rather than giving investors direct exposure to the cryptocurrency itself. However, by tracking futures instead of Bitcoin itself, ProShares ETF could be too risky for inexperienced traders according to experts.