Bitcoin Predictions for 2023
Bitcoin has fallen by more than 60% in 2022, which many companies have a lot of money and do not have an unreasonable climate.
Bitcoin price forecasters last year missed the mark. Some market participants have locked their horns with prices for what could be another volatile year.
2022 is a strong year for crypto. More than $1.3 billion has been cleared from the market. And bitcoin, the world’s largest digital currency, has seen its value fall by more than 60%. Investors are wary of the wave of collapse in the industry from stablecoin project terraUSD and crypto exchange FTX, and the weather is getting worse. Those who predicted the price of bitcoin last year really missed the mark. But with 2023 now upon us, some retailers have already locked their necks with price tags for what could be a game-changing year.
Interest rates around the world are rising, considering risky assets like stocks and bitcoin. Investors are also looking at how the FTX saga, which ended in the arrest of the founder of the company Sam Bankman-Fried in the Bahamas, will come out.
CNBC compiles some of the strongest price trends for bitcoin in 2023. Tim Draper: $250,000
Bitcoin bull Tim Draper has one of the most bullish calls on bitcoin for 2022, predicting that the token will be worth $250,000 by the end of the year.
In November, the billionaire investor said he was extending the timeline for the policy to mid-2023. Even after the failure of FTX, he was confident that the coin would hit the million mark.
“My guess is that since women control 80% of the trading capital and only 1 in 7 bitcoin wallets are owned by women right now, that watershed is about to burst,” Draper told CNBC via e -mail. Bitcoin would need to rally 1400% to be able to trade at this level.
Despite depressed prices and cleaning up prices, there may be reason to think the market is down, according to Draper. “I think the reduction in 2024 will be successful,” he said.
The reduction, or error, is an event that occurs every four years that reduces bitcoin’s reward for miners. Some investors see this as a good thing for the price of bitcoin, as it reduces transmission. The other half is expected to take place in 2024. Bitcoin miners, who use energy-hungry machines to verify transactions and create new tokens, are struggling with falling prices and rising energy costs.
These players accumulate huge amounts of digital currency, making them one of the biggest sellers in the market. With miners exporting their assets to pay off their debt, this should remove much of the selling pressure on bitcoin.
This is a good story for bitcoin, said Vijay Ayyar, Vice President of Business Development at Crypto Exchange Luno. “In past bear markets, miners have often shown significant declines,” Ayyar told CNBC. “The cost of their production is higher than the value of bitcoin, so many miners close their machines … or they have to sell more bitcoins as their business continues.”
“If the market reaches a point where it withstands the selling pressure of the miners, it can be assumed that we are seeing a period of stagnation.”
For some marketers, the worst is yet to come. In the research paper of Dec. 5, Standard Chartered said that bitcoin could fall as low as $5,000. The proposal, one of the bank’s list of “surprises” in which “low prices” are obtained from the market, will represent a 70% drop in current prices.
Eric Robertsen, the bank’s head of global research said, “Production falls on the technical limit” in Standard Chartered’s 2023 night position, “and while Bitcoin sales are slowing down, the damage has been done. He added, “Businesses and other exchanges of crypto receive themselves without sufficient funds, leading to the increase of wealth and the collapse of the confidence of investors in digital assets,” he added. added.
Robertsen said that the situation has a “non-zero probability of happening in the coming year” and falls “outside of the market agreement or our own opinion.”
Mark Mobius: $10,000
Veteran trader Mark Mobius has had 2022 success in terms of price calls. In May, he predicted that bitcoin would fall to $20,000 while trading above $28,000.
Bitcoin Project 2022
He said bitcoin would fall to $10,000 in 2022. That didn’t happen. However, Mobius told CNBC that it is sticking to its $10,000 price call in 2023.
The investor, who made a name for himself at Franklin Templeton Investments, told CNBC that his bearish case for bitcoin stems from rising interest rates and the tightening of monetary policy by the US Federal Reserve. “With high interest rates, the interest rate of holding or buying Bitcoin or other cryptocurrencies is getting better because just holding the coin does not earn interest,” Mobius said via email.
Carol Alexander: $50,000
Carol Alexander, a professor of finance at the University of Sussex, is not far off in her prediction that bitcoin will hit $10,000 in 2022. Now, he thinks cryptocurrency can be set for profit – but not for what you might expect.
The trigger will be more dominoes from the FTX fallout swing, Alexander said. If that happens, he expects the bitcoin price to top $30,000 in Q1 and then $50,000 in Q3 or Q4.
“There will be a sustained bull market in 2023, not a bubble — so we won’t see prices fall as much as before,” he told CNBC. “We’re going to see a month or two of flat prices mixed with long-term and maybe some short-term crashes.”
Alexander’s theory is that as the price of the business and the buyers leave, the big holders of what are known as “whales” can step in to support the market. The richest 97 bitcoin wallet addresses account for 14.15% of the total, according to fintech firm River Financial. Some investors have stopped predicting the value of bitcoin. For Antoni Trenchev, CEO of crypto lending platform Nexo, recent events are a moment of reflection. Bitcoin is on a “good track” at first in 2022, and corporate adoption is increasing, but “a few leaders have entered the game,” he said.
Trenchev once predicted that bitcoin would reach $100,000 in early 2023. Now he’s trying to guess the price.
Laith Khalaf, a financial analyst at AJ Bell, suggested that attempts to predict the price of bitcoin are futile. “We could be sitting here talking about this time next year and it could be $5,000 or $50,000, I wouldn’t be surprised because the market is going strong from ‘thoughts,’ he said. He told CNBC’s “Squawk Box Europe.”