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Could Bitcoin rise to a record-high in 2022?

Bitcoin has seen a major drop off. But a bank CEO predicts it will rise again

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Coins are displayed next to a Bitcoin ATM in Hong Kong.

Coins are displayed next to a Bitcoin ATM in Hong Kong. Some believe the cryptocurrency wukk see a significant rise in value this year.

Kin Cheung, Associated Press

Bitcoin could see such a big rise that it breaks previous records.

What happened: Bitcoin, one of the most valuable and popular cryptocurrencies, has seen a major drop-off in recent weeks, falling to below $40,000, per Fortune. This is after the crypto coin spent multiple months around $60,000 value per coin.

Yes, but: Bitcoin could soon double in value to reach $75,000 per coin as more people embrace it, Guido Buehler, the CEO of Swiss bank Seba, told CNBC.

  • “We believe the price is going up,” he told CNBC.
  • “Our internal valuation models indicate a price right now between $50,000 and $75,000.”
  • “I’m quite confident we are going to see that level. The question is always timing.”

Why it matters: Cryptocurrency has been considered a volatile investment because the value spikes and dips rapidly. Bitcoin is clearly not immune from this.

The bigger picture: Bitcoin wasn’t the only cryptocurrency to drop. Others such as Ethereum and Solana fell off as well, as I reported for the Deseret news.

  • These drops are happening as the Federal Reserve hinted that there could be a rise in interest rates for 2022, according to The Wall Street Journal. Higher interest will impact investor decisions.
  • “As rates rise, holding volatile investments that produce little income becomes less attractive compared with government bonds,” WSJ reports.