Bitcoin Projected to Rise Above $100,000 by 2022: Magnetic MG

Some analysts are calling for the Bitcoin price to reach as high as $150,000 in 2022.
Analysts believe the latest halving is helping to push the price up.
Institutional investments are helping provide mainstream legitimacy to BTC.

The incredible rise in the Bitcoin price and increased interest from financial companies have led to monumental projections for the asset in the coming months.

Bitcoin recently overtook the $50,000 mark again as its upward trajectory has been mostly unharmed by small dips and backslides. BTC was able to reach $52,600 on March 3 before retreating back under $50,000 on March 4.

Bitcoin has been on a successive streak of record shattering prices, setting an all-time high of $58,333 on Feb. 21. In trying to explain the reason for this price push, analysts have pointed to a number of factors, but specifically the last halving.

Bitcoin Bull Calls
William Quigley, managing director of Magnetic, told CNN Business that the past BTC halving has been key in the current bull run.

“What’s happened historically whenever that happens for between the next 12 and 18 month, Bitcoin can go up between 300% and 500%,” said Quigley.

The most recent halving happened in May 2020. There has been some skepticism that it may not have the same effect on the price as the previous halvings did.

This was seen after the second halving of July 2016. On the day of the halving the price was at $660 — 17 months later in December 2017 it hit a new high of $20,000.

If this trend and Quigley’s analysis are correct, hitting $100,000 or even above that is not impossible. We are already seeing this pump in the price and it’s only been less than a year since the halving happened.

Other Impacting Factors
While the halving may be having a strong impact on the price, there are other factors that go into pushing Bitcoin higher.

The interest and monetary investment of corporations into Bitcoin have been a major boost for the cryptocurrency. While actual cash injections like Tesla’s $1.5 billion purchase did help push the price, the media and spectacle around such events also contribute to interest and investment.

Nods towards acceptance and backing by other financial institutions have also helped. Goldman Sachs even recently announced that it will reopen its cryptocurrency trading desk.

Institutional hesitancy towards BTC has been one reason it has not succeeded in achieving mainstream acceptance in years previous. Banks and big financial houses cited its volatile nature when explaining why they did not consider it an asset class or valuable investment for itself or clients.

The recent change in tone by institutions could see a fundamental shift towards the acceptance that has so long been denied, along with an impressive price rise.

Read more: beINcrypto

Bitcoin HODL Waves Suggest Bull Run Has Barely Started

A prominent crypto analyst has been looking at previous market cycles to determine that the Bitcoin bull run has yet to fully take off.

Analyzing Bitcoin HODL Waves from previous bull runs as led crypto YouTuber and analyst Lark Davis to the conclusion that this cycle is still in its infancy.

He added that we are just now past the first major price wave, “get ready for wave 2”.

This #bitcoin bull run has barely even started yet! We are just now past the first major price wave. Get ready for wave 2.

— Lark Davis (@TheCryptoLark) March 4, 2021

The chart depicts three distinct price waves for every market cycle back to 2011. The current cycle shows just one wave cresting at Bitcoin’s recent all-time high of $58,250 on Feb. 21. This indicates that, if history rhymes, there could be two larger ones to come especially if corporate giants keep buying it.

Bitcoin Being Hodled
HODL Waves are a visualization pioneered by Unchained Capital which shows the cross-section of Bitcoin held in wallets grouped by the age since they last moved. The Bitcoin financial services company explained;

“By comparing the age of bitcoin sitting in addresses to the current US dollar prices, we can make some interesting conjectures about the bitcoin economy and the sentiment of HODLers.”

Bitcoin Cryptocurrency (Image: MaxPixel)
Bitcoin Cryptocurrency (Image: MaxPixel)

Glassnode has extrapolated the short-term HODL waves and overlaid them on the logarithmic scale price chart. Using these metrics it does appear that there is a lot more to go with this bull run, but there are many other on-chain and fundamental factors to consider.

One of them is the central bank money printing narrative which could drive wild inflation and devalue global currencies. Trillions of new dollars have been printed for stimulus purposes in the U.S. alone since the Covid-19 pandemic put the economy into shutdown mode in early 2020.

Vice President of digital asset strategy at Fundstrat Global Advisor, Leeor Shimron, compared Bitcoin to M1 money stock – the country’s basic money supply that is used as a medium of exchange. He also thinks this cycle could “get very wild” in the face of unprecedented money printing.

#Bitcoin priced in the M1 money stock still very far from its ATH. In the face of unprecedented money printing, the bull market may just be getting started. This cycle could get very wild.

— Leeor Shimron (@LeeorShimron) March 3, 2021

BTC Price Outlook
At the time of press, BTC was trading at $49,250, down from its recent weekly high of $52,580 hit in late trading on March 3 according to

Momentum is still bullish from a weekend swing low to $43,300 but the asset needs to break above resistance at $55,250 to push towards a new all-time high.

March has traditionally been a bearish month for Bitcoin and crypto markets so this move may come later in the year.

Read more: CryptoPotato