The Bitcoin price has been moving sideways for a few days. Recently a surge in resistance at $ 52,000 was dismissed. Furthermore, the course is in a correction. However, 2022 could be an extremely successful year for Bitcoin. Let’s talk about 3 good reasons why the BTC price could rise massively in the coming year.
#1 Historically, a Big Rally should be Coming
So far, the Bitcoin price has moved in 4-year cycles. These cycles are based on the Bitcoin Halving Events. The last two cycles each ended with large parabolic rallies at the end of the year. This was the case in 2013 and 2017.
The big year-end rally did not take place in 2021. This fact caused some investors to doubt the repetition of the historical price trend. However, there is little evidence that we are now in a bear market. Instead, it is more likely that the current cycle has lengthened. In 2017, too, the big rally at the end of the bull market was later than 2013.
As early as the first quarter of 2022, it is likely that the Bitcoin price will rise again massively and possibly even exceed $ 100,000. The next few weeks will bring clarity to this.
#2 Inflation of FIAT money Confirms Crypto Refuge
By now, most people should be aware that inflation is getting higher and higher in Europe and the USA. This is a homemade problem as the respective central banks have been lowering key interest rates for years and printing more and more paper money. As a result, the currencies Euro and the US dollar continue to devalue.
In 2021, many large companies have already invested more and more in Bitcoin, which has helped the Bitcoin course. There has been massive accumulation. In 2022, inflation could lead to more and more small businesses and retail investors pouring their money into crypto assets. This increases the likelihood of the massive price rally mentioned.
#3 Economic Recovery in 2022
The financial and economic markets should recover very well in 2022. After the crisis year 2020, the global economy appeared to be recovering more strongly in 2021. The forecasts for 2022 are excellent for the stock markets. That should also benefit the Bitcoin course.
In 2021, the first Bitcoin ETFs went to the American stock exchanges. More and more Bitcoin financial products are coming to the financial markets. Therefore, good financial market forecasts should also massively benefit the Bitcoin price.
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