The Bitcoin (CRYPTO: BTC) price is up 2% over the past 24 hours.
The world's original crypto is currently trading for US$23,850 (AU$34,176).
This price bump puts bitcoin up some 5% since this time last week. But it remains down 50% in 2022, having traded for US$47,228 on 1 January.
It's not just the Bitcoin price that's been under pressure this calendar year. Almost every crypto has sold off heavily. For example, the world's number two token, Ethereum (CRYPTO: ETH), is down 53% year to date.
We'll look at some expert insight into whether Bitcoin can make it back to US$30,000 in 2022 in a tick.
But first…
Why have cryptos come under pressure?
This year has locked in the reality that, for now at least, cryptos trade very much like other risk assets, such as high-growth tech shares.
And like other risk assets, the Bitcoin price soared higher for much of 2021 as global interest rates remained at historic lows and central bankers forecast little change for several years to come.
As you're aware, those forecasts proved to be a tad rosy. Soaring inflation in 2022 has ushered in multiple interest rate rises from the United States Federal Reserve, the Reserve Bank of Australia, and numerous other central banks across the world.
These rapidly tightening monetary policies saw the tech-heavy NASDAQ fall 31% from its mid-November 2021 highs through to the end of June this year.
As for the Bitcoin price, it crashed from its own 10 November all-time high of US$68,790 to hit a low of US$17,708 on 19 June. It's up 34% since then.
With that said, can the leading digital token get back to US$30,000 in 2022?
More institutional flows could boost Bitcoin price
Asked about his outlook for Bitcoin and any potential for recouping the US$30,000 price level in 2022, Michael Novogratz, founder of crypto financial services firm Galaxy Digital Holdings, said we need to see more institutional investor interest returning first.
According to Novogratz (courtesy of Bloomberg):
Will Bitcoin get through $30,000 on this move up? We will see – I'm doubtful. I think we're going to probably be in this range now. I quite frankly would be happy if we're in a $20,000, $22,000 or $30,000 range for a while. We're not seeing huge institutional flows, to be fair, but we're not seeing anyone back away.
The billionaire pointed to the Fed's tightening policies, adding that in this environment, "I don't see the mania that we saw in 2021 or 2017 reigniting".
When the Fed does eventually reverse course, it should spur renewed institutional and retail investor appetite for risk assets. And the Bitcoin price is likely to benefit.
