Several crypto analysts expect a significant Bitcoin price increase to come. This is because BTC has historically performed very well in the first week of January.
Is there a big Bitcoin price increase coming?
Renowned economist Alex Krüger pointed out in a tweet that Bitcoin has posted positive returns in the first week of January for the past four years in a row. The price rose on average between 7% and 36% between 2018 and 2021. In 2021, the BTC price rose from $28,653 to $41,441 in the first week of January.
First week of the year effect$BTC returns first week or:
2021 +36%
2020 +13%
2019 +7%
2018 +18%Bears killed santa, but have you heard of the Wise Men?
— Alex Kruger (@krugermacro) Dec 28, 2021
His optimistic outlook for early January stems from his expectation of strong institutional fund inflows. Real Vision CEO Raoul Pal also expects a strong start in 2022. Pal said in a YouTube interview Monday that he believed the Bitcoin sell-off was over and January would have a strong start as institutional capital re-enters the market. is invested.
What can we expect in 2022?
It is not surprising that the Bitcoin price falls at the end of the year and then rises sharply at the beginning of the new year. Companies sell their BTC tokens at the end of the year because it is beneficial for accounting.
Nigel Green, CEO of Fintech and asset management company deVere Group, believes December has developed into Bitcoin’s worst monthly showing since May 2021. He says panic sellers are practically giving away their cryptocurrencies to wealthy buyers.
However, he is optimistic for the long term. Green believes Bitcoin can protect investors from global inflation and that “boundless, global, decentralized currencies are the future.”
However, not everyone is optimistic about crypto in 2022. Carol Alexander, a professor of finance at Sussex University, told CNBC that BTC could drop to $10,000 by 2022.