Key Highlights:
- Laith Khalaf, a financial analyst at AJ Bell, suggested aims to forecast bitcoin’s price as futile.
- Alexander said the catalyst would be more dominos from the FTX fallout tipping over. If this happens, she expects the price of bitcoin will top $30,000 in the first quarter and then $50,000 by the third and fourth quarters.
- Mobius mentioned in an email, “With higher interest rates, the attraction of holding or buying Bitcoin or other cryptocurrencies becomes less attractive since just holding the coin does not pay interest.”
An event that happens every four years in which bitcoin rewards to miners are cut in half is known as halving. It is viewed by some investors as positive for bitcoin’s price, as it squeezes supply. The halving is scheduled to happen sometime in 2024.
The miners of Bitcoin utilise power-intensive machines to verify transactions and new token minting. The remaining selling pressure on Bitcoins can be removed by offloading the holdings to repay the debts.
The miners accumulate piles of digital currency, making them the largest sellers in the market.
“If the market reaches a point where it’s absorbing this miner sell pressure sufficiently, one can assume that we’re seeing a bottoming period.”
2022 was an unsatisfying year for cryptocurrency the world over. A disappointing year, filled with slumps and predictions.
Investors were thrown off by a wave of collapses in the industry, from stablecoin project terraUSD to crypto exchange FTX. The worsening macroeconomic climate was a contributor as well.
The factor weighing on risk assets like Bitcoin and Stocks is the rising interest rates.
The boldest calls for 2023 are listed in this article. It includes the scene left behind by 2022 and then the current readings.
Eric Robertsen, the global head of research at the below-mentioned bank, said, “Yields plunge along with technology shares” in Standard Chartered’s agony 2023 scenario, “and while the Bitcoin sell-off decelerates, the damage has been done.”
The bank mentioned in its December 5th note that Bitcoin may sink to $5000. It would represent a 70% plunge from popular prices.
Carol Alexander, professor of finance at Sussex University, wasn’t incorrect in her prediction that Bitcoin would slip to $10,000 in 2022. “We’ll see a month or two of stable trending prices interspersed with range-bounded periods and probably a couple of short-lived crashes.”
Carol expects the bitcoin price will top $30,000 in the first quarter and then $50,000 by quarters three or four.
She told CNBC, “There will be a managed bull market in 2023, not a bubble — so we won’t see the price overshooting as before.”
According to her, the trading volumes have evaporated, and the traders are on edge. Because of this, the more prominent ‘whales’ would prop up the stock market.
The Fintech firm River Financial believes that the richest 97 Bitcoin wallet addresses amount to 14.15% of the total supply.
Antoni Trenchev, CEO of crypto lending platform Nexo, believed that the recent events were clearing up.
He said Bitcoin was on a “positive path” earlier in 2022, with institutional adoption rising, but “a few major forces interfered.”
Tim Draper was an optimist when it came to Bitcoin calls in 2022. The prediction was worth $250,000 by year-end. His prediction timeline was extended until mid-2023.
According to Tim, despite the FTX collapse, the coin would hit a quarter-of-a-million milestone.
Bitcoin is required to rally 1,400% to trade at the projected level. But, according to Tim, there could be a reason the market has found the bottom, despite the dried-up trading volumes and depressed prices.
Ayyar told CNBC, “In prior down markets, miner capitulation has usually indicated major bottoms.”
“Their cost to produce becomes greater than the value of bitcoin; hence you have a number of miners either switching off their machines, or they need to sell more bitcoin to keep their business afloat.”
Tim Draper spoke to CNBC over email about the following: “My assumption is that since women control 80% of retail spending, and only 1 in 7 bitcoin wallets are currently held by women, the dam is about to break.”
The macroeconomic climate should be ideal for cryptocurrencies to flourish, or the investors should know what they are getting into.
- Published By Team Timeswire