Wrapped Bitcoin price prediction: Tokenised Bitcoin asset takes a tumble
The world’s most popular Bitcoin-Ethereum bridge suffers at the hands of market volatility
As a tokenised asset for the deployment of bitcoin (BTC) on the Ethereum network, the performance of wrapped bitcoin (wBTC) effectively mirrors that of BTC, which suffered the fallout from the United States Federal Reserve’s support for higher interest rates when stocks tumbled on Thursday 6 January 2022, instigating a prolonged period of disappointing performance.
CoinDesk reported that the majority of liquidations came from an $812m (£600m) sell-off of futures by traders in long positions. Other cryptocurrencies, including ether and ripple, suffered similar fates, making for a disappointing year so far.
In this article, we will have a deeper look at chart performance and the forecasters’ wrapped bitcoin price prediction for 2022 and onwards. Be sure to check out our full-scope guide to learn what makes wrapped bitcoin tick.
Is there happier news in store for the wBTC price prediction going forward? Let’s find out.
How does the chart look?
wBTC naturally follows BTC’s chart movements nearly to the cent, having swelled in the third quarter of 2021 before the disappointing end-of-year crypto alignment. Regardless, over the 12-month period, wBTC closed the year out at $47,686 for a 65% price increase.
Then came the more recent sell-off, bringing wBTC down close to the $42,200 zone. In the chart below, we can see a bearish Exponential Moving Average (EMA) cross as the 50-day MA shot below the 100-day MA on 20 December, a gap which only widened in the early stages of 2022.
Downward trading activity on 6 January was more drastic than many wrapped bitcoin price prediction forecasters expected, even after the poor start to 2022. A brief swell in late March saw wBTC head over the $47,000 mark, but a reversal swiftly followed. Come 1 May, wBTC was trading at $38,469, falling to $28,936 on 11 May.
As of 24 May 2022 at 13:00 BST (UT+1), wBTC’s price of $29,253 was 39% below the 90-day high of $48,086 witnessed on 28 March.
What is your sentiment on WBTC/USD?
Forecasters’ price targets
There could be a few red faces after the recent downturn. Goldman Sachs was reported as predicting a $100,000 price target for BTC over five years. But with 57% of the all-time-high of $68,789 on 10 November 2021 being eaten away over a matter of months, there is clearly a price correlation between BTC and traditional stocks.
For what it is worth, the digital forecasters also have price targets with six, even seven figures.
Looking further down the line, the wrapped bitcoin price prediction for 2030 provided at PricePrediction.net is expected to hit $837,689, before crossing the $1m line in 2031. The forecaster’s wBTC price prediction for 2022 averages out to $37,906.
WalletInvestor has a bearish 12-month wrapped bitcoin price prediction target of $23,970, while the wrapped bitcoin price prediction for 2025 falls to $11,152 by the end of that year.
The forecasters at DigitalCoinPrice are a more positive, presenting a wrapped bitcoin price prediction of $38,960 by the end of 2022. Of the metrics used to determine the price, 11 point to a sell strategy, 10 to a neutral strategy and five to a buy strategy.
If the first months of 2022 are anything to go by, there could be a lot of drama still to come in the crypto scene this year. External factors notwithstanding, however, wrapped bitcoin is far and away the most popular tokenised bitcoin product on the market, with fundamentals that look robust enough to weather the storm.
Being pegged to bitcoin’s price, wrapped bitcoin’s investment potential mirrors that of BTC. Despite a scary start to 2022, bitcoin is by far the most popular and largest store of value in the cryptocurrency scene.
That said, recent developments show that it is not exempt from extreme volatility and correlation to traditional stocks. You should always seek professional investment advice on the wBTC price prediction before placing a trade.
It might. Lately it has been dragged down by tumbling bitcoin prices, but in the longer term, digital forecasters have a bullish outlook for BTC and, by proxy, wBTC. Goldman Sachs was recently quoted as expecting BTC to surpass $100,000 in the coming years.
That said, recent developments show how volatile crypto assets can be. You should always invest with caution.
Many wBTC holders have BTC held as collateral, only using wBTC for Ethereum-based DeFi activity which BTC cannot provide. wBTC is more of a tool than a store of value, and since it is pegged to BTC, you should ask yourself what the benefits of holding wBTC are over BTC.
Your investment choices are ultimately your decision. This article is for educational purposes and should not be taken as genuine financial advice.