Bitcoin price has been moving sideways for a few days. Recently a spike in resistance at $ 52,000 was dismissed. In addition, the course is in a correction. Still, 2022 could be an extremely successful year for the mother of all cryptocurrencies. Let's talk about 3 good reasons why the BTC price could soar massively in the coming year.
# 1 Historically, a big bitcoin rally is 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 a major parabolic rally 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. Rather, it is 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 the $ 100,000 mark. The next few weeks will clarify this.
# 2 FIAT money inflation confirms crypto escape
Most people should be aware by now 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 euro and the US dollar continue to depreciate.
In 2021, many large companies have already invested heavily in Bitcoin, which has helped the course massively. There has been massive accumulation. In 2022, inflation could see more and more small businesses and retail investors pouring their money into crypto assets. This increases the likelihood of the massive price rally mentioned above.
# 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 recover more strongly in 2021. The forecasts for 2022 are excellent for the equity markets. The Bitcoin course should also benefit from this.
The first Bitcoin ETFs went on the American stock exchanges in 2021. More and more Bitcoin financial products are coming onto the markets. Therefore, good economic forecasts should also benefit the Bitcoin price.
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