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The start of a year’s second quarter is an apt time to evaluate how the next nine months will pan out. For the cryptocurrency markets and their major player, bitcoin (BTC), there are plenty of surprises in store. Most of them are positive, but even the negative ones offer opportunities for forward thinking investors. The number who own cryptocurrency is expected to at least double during the balance of the year. The total capitalization of the entire crypto sector is also expected to rise by more than 100 percent.

No matter how you analyze the statistics, fundamentals, technical indicators, and analytical charts, 2022 should be a very good year for the major cryptocurrencies, particularly bitcoin. What are the main factors that every day alt-coin enthusiasts should be watching for? In addition to what governments are doing with respect to cryptos, it’s critical to look at consumer acceptance of the new asset. Other components of any educated evaluation should include the first-quarter behavior of BTC, events that could send prices higher or lower, expectations for BTC price movement between now and December, and a few of the long-term trends from year-end until 2025.

Institutions and governments

Now that a large number of institutions and governments are buying altcoins, it’s easy to see why so many individuals have chosen to trade Bitcoin with AvaTrade on a daily basis. That way, they can take advantage of swings for short-term gains or play a longer game of waiting for values to rise as the digital asset gains even more acceptance internationally. Already, several developed nations have begun taxing and officially recognizing virtual money, which has become a huge part of the asset’s de facto identity as an actual currency, form of exchange, means of payment, and store of value.

2022 first quarter price action

The current year has already seen some interesting price action in the BTC market, with late January ending a long drop that began in November of 2021. Since then, as is nearly always the case with BTC, prices have recovered slowly, even getting a boost in late February from the Ukraine-Russia conflict. In times of international trouble, and when the price of your crypto drops, many investors move away from traditional sectors and seek non-traditional ones as a safe haven and hedge against uncertainty in global markets. Since the beginning of 2021, bitcoin has moved in a zigzag pattern that, in general, posts higher highs and higher lows. That kind of movement could continue throughout this year’s final three quarters, sending the altcoin to at least one new high.

Outlook for Bitcoin for 2022

The outlook for BTC in 2022 is highly positive. Price could reach the midway point between two powerful psychological benchmarks, $50,000 and $100,000. While it’s more likely that the asset will land on the higher end of that spectrum by late 2024, events could send it to the mark sooner. For individuals who have been on the sidelines, there’s probably no better time to start trading bitcoin than right now. Keep in mind that even negative developments can be very good for the price of BTC. Namely, international military conflict, political instability, the decline of the US dollar as a default global currency, creeping inflation, and a sagging stock market all play into the hands of altcoin investors and speculators. There are always risks, including the general volatility of the asset. But even as governments move to regulate it, tax it, track it, and offer their own digital currencies as competition, the world’s most popular virtual form of money will continue to be a major source of opportunity for traders and investors.

Long-term forecast through 2025

Even though there are always risks to be aware of, there are plenty of positive forces in play for bitcoin and crypto investors in general, the most significant being continually increasing demand and consumer acceptance. Those two could outweigh any negatives to send BTC’s value substantially upward, all the way to the end of 2025. Here are some benchmarks that are within the realm of possibility for bitcoin as of year-end 2022, 2023,2024, and 2025, respectively: $50,000, $80,000, $100,000, and $125,000. Keep in mind that it’s virtually impossible to make accurate or specific predictions for such a volatile asset so far in advance, even with the most reliable data available. However, those numbers make sense when you look at a five-year historical chart for the leading cryptocurrency and study the 200-day moving average. While volatility is still a risk factor for anyone who invests in cryptos, the huge upside potential is what constantly attracts more traders and investing enthusiasts to the altcoin sector.