Bitcoin’s weekly close was bearish, with the price dropping further below $40,000. The benchmark cryptocurrency has seen low volatility in the past week, but the market could see more action as the monthly close approaches.
At the time of writing, Bitcoin is trading at $38,900 with a loss of 2% in the last 24 hours.
In the short term, market sentiment appears to be turning to the downside as market participants anticipate further downward movement in the price. Contrasting long-term trends and market participants appear to be more bullish about BTC’s future performance.
newly survey Conducted by Finder, 35 industry experts were asked about their expectations for Bitcoin prices by the end of the year. The result brought the number one cryptocurrency by market cap back to $65,000 by that time.
In addition, experts predict that the bitcoin price will continue its multi-decade rise, reaching $179,000 by 2025 and more than $400,000 by 2030. As shown below, the long-term outlook for the cryptocurrency remains in the green.
As noted by Find, the committee has changed its short-term view of the price of BTC. The same survey was conducted in January and experts predicted that bitcoin would reach a new all-time high at around $75,000 by the end of 2022.
Experts have different opinions about the performance of BTC in the short term. Two experts believe that Bitcoin could remain in its range throughout 2022.
In this sense, Bitcoin could remain stuck between $30,000 to $50,000 and thwart the entire market’s expectations. The bulls are anticipating new highs or at least a return to $60K, and the bears are anticipating a dip below $30K.
BTC tends to move against what the majority want. One of the more pessimistic experts, Demetrius Salambasis, who is a FinTech lecturer at Swinburne University of Technology, believes that the price of BTC could be negatively affected by the short-term energy consumption narrative. Salambasis said:
(…) Conversations about the environmental impact of mining could lead to a blanket ban on crypto-mining activities, which could further contribute to the scarcity of Bitcoin and increase prices as a store of value. Last but not least, Bitcoin can be used as a hedge against fiat currency volatility.
Does Bitcoin want to see more demand as people lose faith in central banking?
In this sense, most Finder experts believe that BTC will be replaced as the most popular cryptocurrency. Most aim to take over Ethereum as it becomes more “energy efficient” if it can move to Proof-of-Stake (PoS) consensus.
As shown below, 50% of committee members expect this outcome while 12% answer that they are not sure about this question. Some experts believe that Ethereum will become dominant due to its use cases, others due to its interoperability features, and more.
Optimistic experts believe that Bitcoin could make as much as $100,000 by the end of the year on the back of people losing faith in central banks and governments. In this scenario, people can turn to BTC as a decentralized asset to hedge against the legacy financial system.
Related reading | Peter Brandt says: Why Bitcoin could revisit $27,000
Ben Ritchie, Managing Director of Digital Capital Management, said:
Increasingly, “trust” is becoming a central consideration for investors – can we trust the economic system and the influencers driving it? Confidence has been lost, and with the economy in uncharted territory, Bitcoin is a viable alternative. Putting ‘trust’ in code and mathematics, without interference, has great universal appeal.