The Bitcoin (CRYPTO: BTC) price is up 2% over the past 24 hours.
The worldâs original crypto is currently trading for US$23,850 (AU$34,176).
This price bump puts bitcoin up some 5% since this time last week. But it remains down 50% in 2022, having traded for US$47,228 on 1 January.
Itâs not just the Bitcoin price thatâs been under pressure this calendar year. Almost every crypto has sold off heavily. For example, the worldâs number two token, Ethereum (CRYPTO: ETH), is down 53% year to date.
Weâll look at some expert insight into whether Bitcoin can make it back to US$30,000 in 2022 in a tick.
But first…
Why have cryptos come under pressure?
This year has locked in the reality that, for now at least, cryptos trade very much like other risk assets, such as high-growth tech shares.
And like other risk assets, the Bitcoin price soared higher for much of 2021 as global interest rates remained at historic lows and central bankers forecast little change for several years to come.
As youâre aware, those forecasts proved to be a tad rosy. Soaring inflation in 2022 has ushered in multiple interest rate rises from the United States Federal Reserve, the Reserve Bank of Australia, and numerous other central banks across the world.
These rapidly tightening monetary policies saw the tech-heavy NASDAQ fall 31% from its mid-November 2021 highs through to the end of June this year.
As for the Bitcoin price, it crashed from its own 10 November all-time high of US$68,790 to hit a low of US$17,708 on 19 June. Itâs up 34% since then.
With that said, can the leading digital token get back to US$30,000 in 2022?
More institutional flows could boost Bitcoin price
Asked about his outlook for Bitcoin and any potential for recouping the US$30,000 price level in 2022, Michael Novogratz, founder of crypto financial services firm Galaxy Digital Holdings, said we need to see more institutional investor interest returning first.
According to Novogratz (courtesy of Bloomberg):
Will Bitcoin get through $30,000 on this move up? We will see â Iâm doubtful. I think weâre going to probably be in this range now. I quite frankly would be happy if weâre in a $20,000, $22,000 or $30,000 range for a while. Weâre not seeing huge institutional flows, to be fair, but weâre not seeing anyone back away.
The billionaire pointed to the Fedâs tightening policies, adding that in this environment, âI donât see the mania that we saw in 2021 or 2017 reignitingâ.
When the Fed does eventually reverse course, it should spur renewed institutional and retail investor appetite for risk assets. And the Bitcoin price is likely to benefit.
The post Can the Bitcoin price reach US$30,000 again in 2022? appeared first on The Motley Fool Australia.
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More reading
- Why Bitcoin, Ethereum, and Dogecoin are shooting higher today
- Could this key metric signal more bad news for the Bitcoin price?
- Is it smart to use dollar cost averaging to buy Bitcoin?
- Bitcoin price dips in August after soaring 22% in July. What’s going on?
- Bitcoin price dips. Is Ethereum on track to dethrone the top crypto?
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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