There’s no doubt that 2021 has been a volatile year for the crypto market, with no single asset embodying this better than the market leader Bitcoin (BTC).
To this end, the global crypto space is currently estimated to be in the region of $2.40 trillion, with this having peaked as high as $3 trillion earlier in the year. At the same time, BTC has seen its total value nearly double since the beginning of 2021, while this trend shows no sign of abating any time soon.
But why is BTC still on the march, and what exactly does 2022 hold for the market and investors across the board?
Bitcoin’s Up-and-Down, But Profitable, Year
At the beginning of 2021, a single BTC token was worth $29,001.72, as the asset found itself gripped in the midst of an impressive bull run.
This gathered significant momentum during Q1, as BTC nearly doubled to $56,399.99 by the first week of February, while its total market cap value peaked above $1 trillion for the very first time.
In fact, it saw its value increase by 70% through February alone, before April saw the asset break through the $60,000 price barrier and hit $63,503.46.
Typically, the crypto market then encountered a sustained bear run, which saw BTC shelve nearly 50% of its previous value and slump to $29,807/35 on July 20th. This was driven by numerous factors, including negative commentary and sentiment in the market and proposed crackdowns in regions such as China and India.
The asset was able to showcase its increased resilience through Q3, however, as BTC once again enjoyed sustained growth and achieved a record price high of $67,566.83 on August 11th.
Currently, a single BTC token will set you back $51,296.68, while further and more stabilised growth has been forecast through 2022 and beyond.
What Does 2022 Have in Store for Bitcoin?
If we observe BTC’s performance over the course of the last year, there’s a clear and demonstrable pattern of long-term growth being punctuated by periods of volatility.
To provide further context, BTC was valued at $18,058.90 on December 11th 2020, nearly three-times lower than its current price point as of December 7th this year. This represents incredible growth, as short (albeit marked) bull runs are quickly followed by sustained growth and new price highs.
Demand continues to play a critical role here, especially as investors are known to truly control BTC’s price movements and the way in which underlying blockchain technology is deployed.
With demand likely to remain high as BTC’s circulating supply increases, the asset should see further growth through 2022. In fact, Bitcoin miner Kryptovault has predicted that BTC could hit $140,000 at some point next year, with a particularly sharp hike forecast for the first half of 2022.
Of course, this growth will continue to be punctuated with volatility, so BTC continues to offer superior value as a buy-and-hold investment overall