Can Bitcoin Price Reach USD 30,000 Again in 2022?

The Bitcoin (CRYPTO: BTC) price has risen 2% in the last 24 hours.

The world’s original crypto is currently trading at US$23,850 (AU$34,176).

This price increase puts bitcoin up about 5% since this time last week. But it’s still down 50% in 2022, after trading at $47,228 on January 1.

It is not just the Bitcoin price that has been under pressure this calendar year. Almost every single crypto has sold a lot. For example, the world’s number two token, Ethereum (CRYPTO: ETH), is down 53% year to date.

We’re going to look at some expert insight on whether Bitcoin can return to $30,000 in 2022 in one fell swoop.

But first…

Why have cryptos come under pressure?

This year has locked in the reality that, for the time being at least, crypto is trading the same way as other risk assets, such as high-growth technology stocks.

And like other risk assets, Bitcoin prices surged higher for much of 2021 as global interest rates remained at historically low levels and central bankers predicted little change for several years ahead.

As you are aware, these forecasts turned out to be a little rosy. Rising inflation in 2022 has ushered in several interest rate hikes by the US Federal Reserve, the Reserve Bank of Australia and a number of other central banks around the world.

These rapidly tightening monetary policies sent the tech-heavy NASDAQ down 31% from its mid-November 2021 highs to the end of June this year.

As for the Bitcoin price, it crashed from its own November 10 all-time high of US$68,790 to a June 19 low of US$17,708. Since then, it is up 34 percent.

With that said, could the leading digital token return to $30,000 in 2022?

More institutional flows could boost the Bitcoin price

Asked about his outlook for Bitcoin and any potential to recapture the $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 return first.

According to Novogratz (courtesy of Bloomberg):

Will Bitcoin break through $30,000 on this rally? We’ll see – I doubt it. I think we’re probably going to be in this area by now. I would quite frankly be happy if we’re in the $20,000, $22,000 or $30,000 range for a while. We’re not seeing big institutional flows, to be fair, but we’re not seeing any returns.

The billionaire pointed to the Fed’s tightening policy, adding that in this environment “I don’t see the mania that we saw in 2021 or 2017 re-emerging”.

When the Fed eventually reverses course, it should stimulate renewed appetite among institutional and retail investors for risk assets. And the Bitcoin price is likely to benefit.