https://ift.tt/3HN9SXp Possibility for Bitcoin (BTC) To Reach the $100,000 Mark This Year

• Jerome Powell commonly referred to inflation as a ‘transitory’ occurrence.
• More investors may turn to Bitcoin as a cash alternative.

Bitcoin, which has a market capitalization of more than $800 billion, is at the top of the crowded cryptocurrency industry and has gained a large number of followers among individual and institutional investors alike. 

However, since Bitcoin is a form of a rare resource, currently, almost 18.9 million coins have been mined out of a long-term maximum of 21 million coins, thus its value might rise if demand grows. Additionally, Bitcoin is gaining attention from a wide range of large enterprises throughout the world, making a significant increase in value in 2022 a distinct possibility.

Role of Federal Reserve

In the face of rising costs for essential goods and services in 2021 as a result of the pandemic’s impacts, Federal Reserve Chairman Jerome Powell commonly referred to inflation as a ‘transitory’ occurrence. As inflation continues to undermine the purchasing power of the currency, one of the primary reasons many investors have come to recognize Bitcoin as a legitimate asset class is its ability to keep up with or even outperform, thus increasing the value of the broader economy. 

This is due to the fact that there is a limit on the number of coins that can ever be mined, as opposed to fiat currencies such as the United States dollar, which have no restriction on how much may be produced. If inflation fears linger in 2022, more investors may turn to Bitcoin as a cash alternative, which may propel the cryptocurrency closer to the $100,000 mark in value.