Here's Why the Bitcoin price Can Reach $30k in 2022

Here’s Why the Bitcoin price Can Reach $30k in 2022

Updated: 27 October 2022

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

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Bitcoin has been on an impressive rally after 7% gains over the past two days. At the time of writing, Bitcoin was trading at $20,592. As traders get excited about a possible bull run as the year ends, there is a possibility that Bitcoin could head to $30K.

Bitcoin price analysis

During the past 24 hours, Bitcoin has traded between $20,430 and $20,938, indicating a spike in volatility. Over the past few weeks, Bitcoin’s volatility has been notably low, with the Bitcoin Volatility Index dropping to multi-year lows. However, volatility has spiked, as seen in the chart below, showing that the coin could be in for significant swings.

Bitcoin is currently holding a crucial level of $20,500. If it retraces below this level, $20K will likely be tested again. Bitcoin will likely plunge again to the $20K levels if this support level fails to hold.

Nevertheless, there are top reasons that could see Bitcoin’s bull rally being formed during the last two months of 2022, and the coin could close the year above $30K.

Macro factors are in Bitcoin’s favor

Investors could gain confidence in Bitcoin and accumulate due to expectations that the US Federal Reserve could start slowing interest rate hikes. A report by MacroMicro anticipates that the change in interest rates will be lower in the future than earlier expected.

With traders believing that rates will fall in the future, the crypto markets may recover from a rough bearish trend that saw some of the largest coins losing a significant amount of their value.

If the interest rates ease, risk assets such as Bitcoin will be back under the radar of investors. Bitcoin could continue to rally in the coming months. A friendly policy will also be friendly for the stock markets, and the growing correlation between Bitcoin and stocks is also good news for the asset.

UK gets a crypto-friendly Prime Minister

Rishi Sunak was picked as the new Prime Minister of the United Kingdom. The ascent of Rishi Sunak to the position has boosted investor sentiment, given that he is a major crypto advocate.

Sunak has made efforts in the web 3.0 & crypto space, having earlier commissioned a royal non-fungible token (NFT). Therefore, it is expected that he will make reforms in the UKL crypto market. Earlier this year, Sunak revealed his plans to transform the UK into a crypto assets hub.

Q3 earnings reports

Companies are starting to release their third-quarter earnings reports. The reports’ content is bound to affect Bitcoin’s price movement, given the growing institutional investments in the asset.

The S&P 500 index is primarily used to assess the state of financial markets. Therefore, if the earnings reports positively affect the index, it is likely that Bitcoin will rally to $30K as investors will have a positive overview of the economy.

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