Austrian economist Saifedean Ammous thinks Bitcoin can fix the economic collapse, although its price is steadily dropping. The average price growth over the two previous halving events leads experts to predict that BTC will trade at USD 284,272.
The price of Bitcoin (BTC), the pioneering cryptocurrency, recently opened the market with a bullish trend. After suffering a drop over the last two days, it recovered from its USD 23,000 levels.
Despite trading just above USD 23,000, the leading cryptocurrency remained below its all-time high of USD 67,000 in November 2021.
However, the outlook of BTC is still optimistic if three crucial factors (inflation, halving, and adoption) influence its price.
Bitcoin Is the Crypto Asset with the Highest Volatility
Mike McGlone and other financial experts believe Bitcoin will prove one of the most profitable assets amid market volatility. They expect this situation will occur mainly in the next half of 2022.
Saifedean Ammous, the author of The Bitcoin Standard and Austrian economist, also thinks Bitcoin can fix the current economic collapse.
Jameson Lopp, a Bitcoin advocate and software developer, created a chart showing the inflation rate of decentralized finance (DeFi). It indicates that the price of BTC is steadily decreasing alongside the number of coins still available to miners.
According to estimated data, the inflation rate in the DeFi market will drop to around 0.39% in late 2030.
Halving Events Have Affected the Price of Bitcoin
Bitcoin has undergone several halving events, after which its price has increased.
The first Bitcoin halving occurred in November 2012, the same year the price jumped from USD 12 to USD 1,200. Since the second half of July 2016, it recovered from USD 647 to USD 19,800 as of December.
The price of Bitcoin rose by 463%, going from USD 8,700 to USD 49,000, on May 11th, 2021. That happened one year after the most recent halving event in May 2020.
Experts expect Bitcoin to trade at USD 284,272 for the next halving event scheduled for 2024. That estimation relies on the average price growth over the two previous reductions in the price.
Institutional Interest Also Influences the Price of Bitcoin
Institutional interest is also a fundamental factor in the cryptocurrency space and the price of Bitcoin.
Investment management corporation BlackRock has recently collaborated with cryptocurrency exchange Coinbase to connect its customer base holding shares.
Experts have constantly talked about the increasing relevance of Bitcoin in the global economic system. They have said its price influences the rest of the crypto market as a ripple effect. However, external factors like the Russia-Ukraine conflict and the Fed’s rise in interest rates can also affect the cryptocurrency.
Bitcoin is trading at around USD 23,183 and has accumulated a 2.8% loss over the last 24 hours. While its daily trading volume is above USD 26.06 billion, its market capitalization is about USD 443.11billion, according to CoinGecko.
By Alexander Salazar
