The year 2022 was a difficult one for the crypto industry. The value of the market dropped by more than $1.3 trillion as a result of the sell-off. And the value of bitcoin, the most widely used crypto currency in the world, fell by over sixty percent.
Investors were taken aback as a tsunami of failures swept across the business, ranging from the stable coin to the cryptocurrency exchange FTX on top of a deteriorating general economic environment. Those who attempted to forecast the price of bitcoin in 2022, were extremely wrong!
For the New Year, 2023 has some market professionals making price predictions for what may be another tumultuous year.
The increase in interest rates that are occurring all around the world is having a negative impact on risk assets such as equities and bitcoin. Investors are also keeping a close eye on how the drama surrounding FTX, which led to the arrest of the company’s founder Sam Bankman-Fried in the Bahamas, will play out in the future, and whether sentiment can shift for the platform’s demise which has sunk investor confidence in crypto.
2023 Bitcoin Forecasts!
Tim Draper forecasts $250,000 for Bitcoin:
Tim Draper is a Bitcoin bull with a Bitcoin position of $250,000 USD. Draper’s forecast for the value of bitcoin in 2022 was among the most bullish of any analyst, in which he anticipated that one bitcoin would be worth $250,000 by the end of the year.
The billionaire venture capitalist stated in November that he is extending the timescale for the fulfilment of that forecast to the middle of 2023. Even after the FTX exchange was shut down, he is confident that the coin would eventually reach the quarter-million mark.
“My opinion is that given women control 80% of retail spending and only 1 in 7 bitcoin wallets are currently held by women that the dam is ready to break,” reiterates Draper.
That would infer that Bitcoin’s price would have to increase by 1,400% before it could reach that level on the market.
According to Draper, there may be grounds to think that the market has reached a bottom in spite of the falling prices and the reduction in the volume of trade that is taking place.
He stated, “I have a sneaking suspicion that the halving in 2024 will result in a profitable run.”
The failure of FTX is causing tremors throughout the cryptocurrency industry. It’s possible the suffering isn’t over yet.
The halvening, also known as the halving, is an event that occurs once every four years and involves the reduction of bitcoin rewards for miners by half. Because of this, a number of financial specialists believe that the price of bitcoin will increase in the near future. It is anticipated that the subsequent halving will take place some time in 2024.
Bitcoin miners, who utilize computers that consume a lot of power to verify transactions and create new tokens, are feeling the pinch as prices continue to fall and as the cost of energy continues to rise.
These individuals amass enormous quantities of digital currency over time, positioning them as some of the most successful vendors on the market. Because miners are selling their shares to pay off their debts, the majority of the remaining selling pressure on bitcoin should be eliminated as a result. Despite a decline of sixty percent so far this year and the prospect of further volatility, bitcoin remains a viable option for financial transactions.
According to Vijay Ayyar, vice president of corporate development at the cryptocurrency exchange Luno, the bearishness and liquidation by miners is a historically positive indicator for bitcoin.
According to Ayyar “in previous down markets, miner capitulation has frequently indicated big bottoms.” Their cost to create grows larger than the value of bitcoin, and as a result, you have a number of miners either shutting off their computers or giving up mining altogether or else they need to make more sales of bitcoin in order to keep their company solvent.
Standard Chartered forecasts $5000 for Bitcoin:
Analysts at Standard Chartered believe that the worst is yet to come, an in speculative research paper dated December 5tth, 2022Â the price of bitcoin may go as low as $5,000. The prediction, which is on the bank’s list of “surprises” that are market is apparently ignoring, would result in a drop in prices that are 70 percent lower than they are right now.
“Yields plunge along with technology shares” in Standard Chartered’s nightmare scenario for 2023, “and while the Bitcoin sell-off decelerates, the damage has been done,” said Eric Robertson, the bank’s global head of research. “Yields plunge along with technology shares” in Standard Chartered’s nightmare scenario for 2023.
“An increasing number of cryptocurrency enterprises and exchanges are finding that they do not have sufficient liquidity,” he continued, “which is leading to a further wave of bankruptcies and a complete breakdown in investor trust in digital assets.”
Robertson stated that the scenario has a “non-zero likelihood of occurring in the year ahead,” and that it “goes considerably outside of the market consensus or our own baseline forecasts.”
Mark Mobius forecasts Bitcoin at $10,000:
Mark Mobius, an experienced investor, made some rather accurate price calls in 2022, which contributed to his fortune. When the price of bitcoin reached over $28,000, he predicted that it will fall below $20,000. This prediction was made in May.
He predicted that the price of bitcoin would drop to $10,000 in 2022. That did not come to pass. However, Mobius stated that he stands by his prediction that the price will reach $10,000 in 2023.
According to the investor, who made his name at Franklin Templeton Investments, his bear case for bitcoin originated from rising interest rates and general tighter monetary policy from the U.S. Federal Reserve. The investor made his career at Franklin Templeton Investments.
Since simply holding the coin does not pay interest, the appeal of holding or buying Bitcoin or other cryptocurrencies becomes less attractive as interest rates rise, Mobius said in an email. “With higher interest rates, the attraction of holding or buying Bitcoin or other cryptocurrencies becomes less attractive.”
Carol Alexander forecast for Bitcoin at $50,000:
The forecast made by Carol Alexander, a professor of finance at Sussex University, that the price of bitcoin will drop to $10,000 in 2022 was not too far off the mark.
Now, she believes that the cryptocurrency could be set for gains, Alexander stated that the toppling of additional dominoes as a result of the FTX disaster would serve as the spark. In the event that this will take place, she believes that the price of bitcoin will surpass $30,000 in the first quarter, and then it will reach $50,000 in the third or fourth quarter.
Alexander thinks “there will be a managed bull market in 2023, not a bubble,” which means that we won’t see the price overshooting like it did in the past. “We’ll see a month or two of stable moving prices mixed with range-bounded times and probably a number of short-lived crashes,” Alexander states, and “We’ll see range-bounded periods, and maybe a couple of crashes” along the way through the year.
Alexander’s line of thinking is that huge holders of assets, also known as “whales,” will most likely intervene to prop up the market because trading volumes are decreasing and dealers are becoming increasingly anxious.
Some additional thoughts:
Some investors have given up trying to forecast the price of bitcoin because they believe it is impossible. Recent events have served as a wake-up call for Antoni Trenchev, the Chief Executive Officer of the cryptocurrency lending platform Nexo.
Earlier in the year 2022, Bitcoin was moving along a “good path,” with institutional acceptance on the rise; however, “a few big causes interfered,” as he explained.
Trenchev once forecast that the price of bitcoin would reach a height of $100,000 by the beginning of 2023. He will no longer make any further attempts to forecast the price.
It was stated by Laith Khalaf, a financial expert at AJ Bell, that mentions that attempts to estimate the price of bitcoin are fruitless and not based on any accurate fundamental basis, but throwing a dart at a board.
Kalaf says, “We might be sitting here talking this time next year and it could be at $5,000 or 50,000 it really wouldn’t surprise me because the market is so highly driven by mood.”
