Bitcoin Price News: Will the Cryptocurrency Hit “New Highs” This Year Despite a Rocky Start?

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Bitcoin hasn’t had the best start to the year, but stats suggest it finally stabilized this week and may even be on the way to another massive run up. After adding 1% since last Sunday, the biggest cryptocurrency in the market is slowly recovering after falling 12% in the first week of 2022. If we take the first week of 2021 and compare it to this , we can see Bitcoin last year made a massive 15% gain and traded above $50,000 per coin. Although this week’s improvement seems tiny, experts in the field are confident that Bitcoin will rise again in the next couple of weeks.

Currently, the price of Bitcoin sits at a “low” $42,000 per coin, but experts suggest it could climb between $50,000 and $60,000 over the next few weeks. The reason for the jump, according to Panxora CEO Gavin Smith, is looming inflation. This is a “real” interest rate that will be adjusted for inflation. When the number is negative, it only means that consumer prices will continue to rise faster than benchmark bond yields. As investors continue to lose value by holding bonds and other fixed income instruments. This dynamic encourages risk-taking within the framework of the ultra-accommodative monetary policies implemented by all the central banks in the world.

Can Bitcoin reach new highs in 2022?

According to the US Department of Labor, the consumer price index rose 7% in December compared to the previous 12 months. It rose from the 6.8% recorded in November. This is actually the fastest annual increase since 1982. Even though Bitcoin has already recovered after dropping below $40,000 on Monday, this rebound pales by Bitcoin standards. It is believed that if the cryptocurrency rises above $45,500 this year, there could be another sharp move higher than ever in modern history. Anything could happen in 2022.

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