Sorry this came a little late, was too busy crying into my pillow at the end of 2021 (where’s my $100K Bitcoin?!) and into the early days of 2022 to write about this.
Anyway, we have finally come to the end of yet another crazy, crazy year. At the end of the year, it seems like Bitcoin has treated 2021 as a mega period of accumulation and consolidation. Still, as a period of consolidation, we still managed a 59% gain for the year, which will be a huge win for any other asset. Yet when it comes to Bitcoin, people get disappointed.
Bitcoin Monthly Chart
For the month of December, we notched another disappointing red candle, marking a 19% descent ($10,759) to close out the year at $46,214.
Despite closing the year in the green, many people have been severely disappointed by the price action, no doubt fueled by analysts who have been calling for Bitcoin to easily breach $100K last year.
In that context, it’s easy to see why people are calling for the end of bitcoin once again, since against expectations, bitcoin is considered to have severely underperformed.
Bitcoin Yearly Chart
But guys, I want you to pull out of your day-to-day, zoom out and look at the bigger picture here. This is a log chart of Bitcoin’s price over the last decade.
Does this look like a dying asset / bubble to you?
Every line on this chart adds a factor of 10 to the price. And honestly, we were all hyped into making high price calls last year because of several fundamental factors at play. But these fundamentals are here to stay.
- Bitcoin IS legal tender in El Salvador, and potentially will add more countries to this list in 2022.
- Banks are starting to notice, and provide trading and custodial services around Bitcoin and other crypto assets. Even DBS is doing this.
- Companies are actively allocating Bitcoin into their reserve treasury, alongside cash.
- We had our first US Bitcoin Futures ETF launched. Looking at a Spot Bitcoin ETF to launch in 2022.
These trends are only going to strengthen over the next few years.
I honestly wouldn’t be surprised to see Bitcoin at $100,000 in 2022. Would you?
In the meantime, I’m slowly earning interest in crypto with Hodlnaut and Crypto.com.