Bitcoin (CRYPTO: BTC) investors have been on another volatile ride in the year almost gone.
And we're not exaggerating.
Over the past 12 months Bitcoin traded as high as its 10 November all-time high of US$68,789 (AU$96,882) and as low as US$19,080.
That's some spread!
Crypto investors with cast iron stomachs who held onto their Bitcoin will be sitting on gains of some 61% since 1 January.
Those who bought at the 10 November record high will be nursing some significant losses yet.
That's a look in the rear-view mirror for you.
But what can crypto investors expect from Bitcoin in the year ahead?
What's next for Bitcoin in 2022?
That, of course, is a loaded question.
With myriad variables potentially pulling Bitcoin higher or lower next year, the crypto is likely to remain volatile. Though according to Josh Gilbert, crypto analyst at multi-asset investment platform eToro, that volatility could begin to smooth in 2022.
Asked on his outlook for the token in the year ahead, Gilbert told The Motley Fool:
We continued to see further adoption from Bitcoin in 2021, and we can anticipate that this will extend into 2022 as more tech companies such as Meta (WhatsApp) and Twitter integrate the cryptoasset into their functionality.
However, this is just the starting point for adoption, and it still has a long way to go.
In 2021, Bitcoin undertook its lightning upgrade which could really help the asset flourish in 2022, with now greater efficiency and privacy. I also believe that BTC's volatility will start to decrease in 2022, as institutional adoption grows and the market matures.
Money managers will find it difficult to not allocate cryptoassets such as Bitcoin to their portfolios in 2022, given its significant performance in 2020 and 2021.
We already saw a lot of that institutional adoption happening Down Under this year. Including Commonwealth Bank of Australia (ASX: CBA), which became the first Australian bank to offer crypto services to its customers, in an announcement made on 3 November.
Bitcoin investors will be keenly watching that space to see how things progress in 2022.
