Bitcoin (BTC) could achieve its $100,000 target in 2022 despite the slow start
Many experts remain bullish on BTC as big companies and Governments continue adopting it
YEREVAN (CoinChapter.com)- Bitcoin’s (BTC) price could climb as high as $100,000 per token in 2022, despite its rough start to the year.
The current uncertainty that reigns in the cryptocurrency markets makes such predictions seem far-stretched. However, recent global developments indicate that Bitcoin might well reach that target after all, unfazed by the occasional FUD.
On Thursday, the U.S. Labor Department published the Consumer Price Index (CPI), showing that inflation jumped 7.5% in Jan. 2022 year-over-year, the highest since 1982. In response, Bitcoin’s (BTC) price dropped on fears that higher inflation would prompt the Federal Reserve to implement a more aggressive monetary policy next month.
Nevertheless, many experts commented that the central bank officials would go easy on its rate hike plans, noting that they would not want to hurt stocks that have also fallen in recent times due to the Fed’s ultra-hawkish FUD.
On the other hand, the falling Gold prices, seen as a traditional inflation hedge, are poising Bitcoin as the better alternative. Moreover, with more people turning to cryptocurrencies to save their hard-earned finances from purchasing-power losses, Bitcoin will have more takers globally despite the recent dips.
Some of the biggest names in the financial world are not shying away from adding Bitcoin (BTC) to their balance sheets.
Earlier this month, MicroStrategy’ purchased an additional 660 Bitcoin (BTC), bringing its net BTC reserves to over 125,051 coins. Of course, its CEO Michael Saylor has been one of the most outspoken supporters of cryptocurrencies.
However, other major names have also jumped to add Bitcoin to their balance sheets.
Elon Musk-led Tesla revealed in a public filing last week that the value of its Bitcoin holdings amounted to nearly $2 billion by the end of December 2021. Tesla now has the second-largest Bitcoin stash among major companies.
Earlier this week, Canadian Audit, Tax, and Advisory firm KPMG also joined the list of BTC holders. In addition, the company announced that it had allocated a portion of its corporate treasury to Bitcoin (BTC) and Ethereum (ETH).
KPMG employs nearly 8,000 people in over 40 locations across Canada. The company’s decision to add the leading crypto to its treasury suggests it expects the price of BTC to rally.
3. Vote for? The next Bitcoin loving politician
The leading cryptocurrency’s support base has increased over time, with many influential politicians pushing for wider adoption. After El Salvador made BTC legal tender, it has gained the attention of various Governments.
Last November, U.S. Senator Ted Cruz introduced a resolution in the Senate. The resolution, titled “Adopting Cryptocurrency in Congress as an Exchange of Payment for Transactions Resolution,” proposes to accept cryptocurrency in the Capitol Complex.”
“As consumers better understand and embrace cryptocurrency, merchants are increasingly accepting crypto as a payment method. Congress is typically slow to adopt new technology. My bill would position Congress to lead on this issue by having congressional cafeterias, vending machines, and gift shops accept crypto payments,”
Senators Pat Toomey and Cynthia Lummis, both members of the Senate Banking Committee, have also pushed for wider crypto adoption. Incidentally, they both hold crypto assets,
Recently India moved away from its position to ban cryptocurrencies. Instead, the country’s finance ministry decided to tax crypto gains to the tune of 30%. Albeit the high tax rate, the move gives some degree of legal status and official recognition in the giant Asian country.
Earlier this week, the Russian government moved to recognize Bitcoin as a form of currency. In its decision, Vladimir Putin’s administration opposed the Central Bank’s suggestion for a crypto ban.
A member of the Tennessee House of Representatives, Jason Powell, recently introduced a bill that would allow the different levels of state government to invest in NFTs and cryptocurrencies.
With Bitcoin and cryptos getting wider adoption every day, it is unlikely that any FUD will stop its price rise. Therefore, in the given scenario, a $100,000 BTC by the second quarter (Q2) of 2022 looks highly plausible.
Yerevan-based Editor and writer focusing on topics about cryptocurrencies, NFTs, politics, and international relations. Having completed his Bachelor's and Master's degrees from Delhi's Jawaharlal Nehru University, he currently works as a reporter at CoinChapter.
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