Cryptocurrencies, led by Bitcoin BTC/USD, have been through a bloodbath, and the selling doesn’t appear to have stalled. Analysts, however, are hopeful that patient investors who are willing to ride out the storm will be adequately rewarded.
Bitcoin’s Bump-up And Slump: After the nearly 60% gain for Bitcoin in 2021, thanks to a late-year run up to an all-time high of $68,789.63 on Nov. 10, 2021, investor began hoping for follow-through buying heading into 2022.
But that was not to be. Fed’s intent to remove monetary policy accommodation and the Russia-Ukraine war that threatened the global order weighed down on the space. Briefly amid the war in Eastern Europe, chatter of the utility of cryptocurrencies during an uncertain macroeconomic and geopolitical backdrop grew louder. It, however, was inadequate to give a thrust to the space.
After ending 2021 below $50,000, Bitcoin was found rangebound until late April. The apex crypto then took a leg down, and the recent downtrend has pushed it below the $30,000 level.
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Analysts Optimistic Of Turnaround: Despite fears of a crypto winter, analysts are optimistic that things will turn around. A panel of analysts, polled by price tracking website Finder.com, expect Bitcoin to end the year at $65,185. The analysts are more optimistic of the future trajectory, expecting the crypto to hit $179,280 by 2025 and $420,200 by 2030.
The targets cannot be shrugged off as unrealistic, given that the acceptance and adoption of cryptocurrencies have been on the rise. Return of risk appetite in the market could be the key for the reversal in sentiment to happen.
Bitcoin Good Long-term Bet? A $1,000 invested in Bitcoin at Friday’s closing price of $29,200.74 will fetch 0.034 Bitcoin. If an investor holds his position until 2025 and if the apex currency hits Finder panel’s 2025 price target, he would have Bitcoins worth $6,095.52.
This suggests the investor would have generated a return of roughly 510% over the three-year time horizon.
At last check, Bitcoin was seen trading 1.76% higher at $29,500.88, according to Benzinga Pro data.