Bitcoin (CCC:BTC-USD), the largest cryptocurrency, has had a rough start to the new year. Today, it dipped below $40,000, representing the first time since this past September.
Is seasonality to blame? CoinDesk reports that Bitcoin declines by an average of 3.3% during January based on the past nine years. However, February is a different story; Bitcoin has increased by an average of over 10% during that month. This suggests that some BTC traders may be selling into the January decline in hopes of picking up the coin at lower prices in anticipation of a February jump.
This cryptocurrency also recently picked up an acclaimed investor as a supporter. Recently, hedge fund legend Bill Miller revealed that over “50% of his net worth” is in Bitcoin and Bitcoin-related companies, such as MicroStrategy (NASDAQ:MSTR). Miller notes that he views Bitcoin as a “insurance policy against a financial catastrophe” and that he is in favor of Bitcoin’s scarcity. Miller went on to say that individual investors should put at least 1% of their assets in Bitcoin because it is “very under-penetrated” and “can go up ten times or fifty times,” among other reasons.
Bitcoin investors should breathe a sigh of relief knowing they have Bill Miller on their side. So, with that in mind, let’s take a look at some Bitcoin price predictions.
Bitcoin Price Predictions
- Goldman Sachs has a 2027 price prediction of $100,000. Co-head of foreign exchange strategy Zach Pandl believes comparing Bitcoin to gold can “help put parameters on plausible outcomes for bitcoin returns.” Pandl adds that if Bitcoin’s share of the store of value market rises by 50% over the next five years, it could increase to over $100,000. This would make for compounded annualized returns of between 17% and 18%.
- Wallet Investor has a 2022 price prediction of around $72,000. This prediction would imply upside of over 70% from current prices. Wallet Investor calls the crypto “an awesome long-term investment.” Further, the site shows that sentiment surrounding BTC has been extremely bearish for the past month.
- Sussex University finance professor Carol Alexander has a 2022 price prediction of $10,000. This prediction would represent a massive 76% decline. Alexander warns enthusiasts of the crypto’s 2018 crash and believes the same could happen this year. The professor also says Bitcoin “has no fundamental value.” Instead, Alexander recommends investors look into cryptocurrencies with actual utility, such as Solana (CCC:SOL-USD) or Cardano (CCC:ADA-USD).
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
