When Bitcoin slid from a record-high valuation of $69,000 in November 2021 to under $33,000 in January 2022, there was genuine concern in the cryptocurrency community that it was an indication that dire things were ahead. In the parlance, there were those who wondered aloud whether a “crypto winter” was at hand.
David Marcus, former head of the digital wallet Novi, went so far as to tweet on Jan. 24 that the crypto had already entered that bearish phase, while adding that it might not be the worst thing, as it is during such periods that savvy investors tend to make hay. Nadya Ivanova, chief operating officer of the tech research firm L’Atelier, was of the same mindset, telling CNBC’s “Squawk Box Europe” that the crypto market was in “a cooling-off period” and that that “might actually be an opportunity to start building the fundamentals of the market.”
As the weeks have passed and Bitcoin’s value has stabilized, optimism has only grown. By mid-March its value stood just over $40,000, and while the Federal Reserve raised interest rates to combat inflationary trends, Bitcoin held steady. Certain experts foresee its value exceeding $76,000 by the end of 2022, before climbing to $192,800 by the end of 2025 and $406,400 by the end of 2030.
Michael Novogratz, founder and CEO of Galaxy Digital, told Bloomberg that in his estimation Bitcoin will remain in the $30,000-to-$50,000 range this year, then mushroom to $500,000 by 2027. As he put it:
“We see an adoption cycle that accelerates. Bitcoin grew so much faster last year – crypto grew – than the Internet did at its best in the ‘90s. So I see this going viral everywhere. If it’s in the Mideast or in pension funds in the United State, all are getting ready to participate.”
Greg Beard, CEO of Stronghold Digital Mining and formerly the Global Head of Natural Resources, Senior Partner and Member of the Management Committee at Apollo Global Management is also optimistic. Beard told Fortune that while it’s hard to predict where Bitcoin might be at the end of 2022, he believes it “should be worth multiples of today’s price in five years, I’d say at least five times.”
That would take it to $200,000.
As noted by CoinDesk, Bitcoin’s recent slump does not quite compare to the one that befell the leading crypto in 2017-18. Then, it lost 70 percent of its value in one 51-day period, after being valued at $19,850 – an all-time high to that point – in December 2017. This time, it lost 52 percent over 75 days.
The crypto market as a whole plunged 66 percent in ‘17-18, while it has fallen 48 percent during its current slump.
The inescapable conclusion is that while Bitcoin has undergone something of a chill as of late, it is a considerable stretch to say that a “crypto winter” is approaching. Rather, it is as Vijay Ayyar, vice president of corporate development at crypto exchange Luno, told CNBC: The current trend represents a “correction,” as opposed to an extended slump. Judge accordingly.
