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From its creation initiating an entire industry of decentralization to its current valuation over $2 trillion, Bitcoin is the first decentralized peer-to-peer cryptocurrency that introduced the world to blockchain technology. Out of a simple white paper from the alias Satoshi Nakamoto, the crypto market became a massive draw in the investing world.
As the price of Bitcoin fluctuates, many people wonder — will Bitcoin reach $100,000 in 2022? To find the answer, Benzinga breaks down some of Bitcoin’s previous price cycles, trading volume, previous investment advice and how this digital currency is still at the top of the heap.
Is it Possible For Bitcoin Reach $100,000 in 2024?
Bitcoin is a volatile asset, making it incredibly hard to predict its future price. One way to examine if it is possible for Bitcoin to go to $100,000 is to take a look at the previous market cycles’ price actions.
At the time of its launch in 2009, Bitcoin traded for less than a penny. About a year later, Bitcoin had its first rally, appreciating to over $30 per BTC. A few months later, Bitcoin entered its first bear market, reaching a floor of about $2.
Fast forward to 2013 when Bitcoin entered another rally reaching all-time highs of over $1,200 — leading to a 40,000% return on investment for investors who bought at the previous all-time high. Over the next year, Bitcoin depreciated to under $200.
In 2017, Bitcoin entered another bull market, appreciating to about $20,000 — an 800% return from the previous high of $1,200. The following years would develop into a bear market for Bitcoin, hitting a local low of about $3,200.
The post-COVID rally marked an all-time high for Bitcoin at right under $65,000 per coin — within the next few months, the price of Bitcoin consolidated, with a low touching $29,000.
In November 2021, Bitcoin gained heavy momentum that led to new all-time highs of about $69,000. Over the following months, the price fell to $42,000 soon after. Multiple global economic crises and 2 catastrophic crypto company implosions (FTX and Terra Luna) brought Bitcoin well below $20,000 in 2022. In early 2023 Bitcoin saw a surprising pump, breaking a few major resistance levels. After this resurgence, Bitcoin has a much greater chance to reach $100,000 in 2024, but there is no guarantee as the crypto market slowly recovers from the aforementioned collapses and competes with forthcoming regulations from the Securities and Exchange Commission.
If these Bitcoin bull cycles continue to grow modestly as previous cycles have demonstrated, it is possible for Bitcoin to reach $100,000. That would put Bitcoin’s market cap at roughly $2 trillion, not far behind Microsoft's market cap of $2.4 trillion, which seems almost impossible for a payment system that’s fully decentralized.
Can Bitcoin Reach $100,000: Analysis and Predictions
Block rewards and market sentiment make up two factors that have a role in determining the value of Bitcoin. Every 4 years the amount of Bitcoin rewarded to miners halves, slowly changing the supply in circulation, which affects the price. This is why crypto experts often cannot offer financial advice based on a price prediction.
The current market sentiment around Bitcoin has started to fall as the price has stagnated throughout 2023. Although many investors think this reduction may be the start of a bear market, it is probably too early to make such a claim. Until Bitcoin falls below its current level of support and forms lower lows, it is still possible the price may gain upwards momentum over the following months.
Will Bitcoin Be Unstable at $100,000?
Historically, when Bitcoin reaches an all-time high and its price has topped, the price drops in a short period of time. After this drop in price, consolidation occurs before it enters the next bull run, which leads to dramatically volatile prices. If these historic cycles of Bitcoin price continue, it is likely that Bitcoin will not be a stable asset any time soon.
The average price has fluctuated quite a bit over the past few years, and investment advisors sometimes avoid crypto because they want more stability for their clients, especially if you don’t have a healthy risk appetite. Yes, Bitcoin is the largest cryptocurrency, but you will need to transition to a stablecoin if you want true “stability” and greater predictability.
Benefits of Investing in Bitcoin
Investors gain many benefits by investing in Bitcoin. One of the most appealing aspects would be its finite supply — where there will only ever be 21,000,000 BTC ever minted.
A key value of Bitcoin is the code it’s built on, which has inspired the quickly growing decentralized finance (DeFi) industry. Blockchain and consensus mechanisms have enabled the future of smart contracts and peer-to-peer transactions, essentially creating an entire industry of decentralization.
Another benefit of investing in BTC is that the market never closes, which allows traders to buy or sell Bitcoin at any time of the day. This feature makes it extremely easy for traders to take profits as they don't have to wait for markets to open to liquidate their positions.
Crypto enthusiasts can add or subtract from the market capitalization of BTC at any time, asset managers can trade on behalf of their clients or they can transition to another cryptoasset, if needed.
Cons of Investing in Bitcoin
A major con of investing in Bitcoin is that it is a hard asset to value, leading to its volatility. It’s important to consider that the value of speculative assets like crypto, art and gold comes from what people are willing to pay for them.
A price change on Bitcoin can be quite severe, and you can lose fiat currency if you’re trying to take short positions. Plus, the crypto market is not the same as a foreign exchange. You can study countries and their geopolitical or socioeconomic histories. An investment decision for cryptoassets can only be so informed, and these naturally risky assets are such that market participants may need to take advantage of a good opportunity over and over with short positions.
Yes, holding Bitcoin over many, many years may have made you money, but the platform has not held value, making value investing difficult.
Another con of Bitcoin is its limited use case. Bitcoin is best used as a store of value whereas other cryptocurrencies such as Ethereum have more diverse use cases. Bitcoin fees are relatively high, making it hard to complete transactions for micropayments or even day-to-day transactions. Altcoins provide different features for small transactions like these.
Mining and Proof of Work
Bitcoin relies on the arguably outdated proof-of-work consensus mechanism, where computers validate blocks of transactions by solving mathematical puzzles every 10 minutes. This is the process known as mining cryptocurrency.
The first computer to solve the puzzle and clear the transaction is rewarded a small portion of BTC. Every 4 years the block reward for Bitcoin is cut in half, known as the “halving.” Historically, Bitcoin has entered bull markets around the halving. The rewards have a direct impact on the supply of BTC in circulation, which impacts price. You can read more about the technical aspects of Bitcoin from its whitepaper.
Best Online Exchanges to Buy Bitcoin
Traders can choose from many different crypto exchanges, a few of them being HYCM, Webull, eToro, Gemini and Voyager. A centralized exchange is a great way for individuals to start buying cryptocurrency. Make sure to take a look at what each exchange has to offer, as they do offer different features for investors.
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So, Can Bitcoin Reach $100,000 in 2024?
As an investment, Bitcoin is completely speculative. A large following believes the DeFi space is a bubble waiting to burst. Others feel that DeFI is the most revolutionary technology humans have ever built, and it will completely restructure society. Bitcoin could certainly reach $100,000 in 2024 but the community is split whether or not it will actually happen.
If you are looking to invest in a long-term crypto project, then Bitcoin may be a great investment for you. Remember — don't invest more than you can afford to lose since Bitcoin will probably continue to be a volatile asset.