Some crypto analysts believe that the price of Bitcoin will drop below $10,000 this year. Others believe that the influence of investor sentiment on prices makes cryptocurrency predictions completely useless.
The incidents that devastated the cryptocurrency market in 2022 have clouded analyst forecasts, but some of them are already seeing the light at the end of the tunnel. So, which direction will the price of Bitcoin take in 2023? Here’s what the experts think.
Bitcoin price will hit $250,000 this year, says Tim Draper
Tim Draper, a cryptocurrency investor and avid bitcoin advocate, believes the new investment habits of women will boost crypto adoption and push the price of bitcoin to $250,000 in 2023. Note, however, that the analyst predicted that it has been three years since BTC would hit $250,000 in 2022.
Mr. Draper began investing in Tesla, Twitch, and most recently several cryptocurrency companies, including Coinbase and Tezos. He rose to fame in 2014 after buying the 30,000 BTC seized on the Silk Road for $19 million.
For his part, Jurrien Timmer, chief investment officer at Fidelity Investments, expects Bitcoin to hit $30,000 in price this year.
Carol Alexander, a professor at the University of Sussex, for her part, estimates that Bitcoin will trade at $30,000 in the first quarter of 2023 and $50,000 in the second quarter. Before becoming interested in cryptocurrencies, Carol Alexander studied game theory, mathematics and number theory. Recently, she has been openly critical of the reaction of traditional finance players to the collapse of Celsius and cryptocurrency hedge fund Three Arrows Capital.
Edward Moya, senior analyst at Oanda, a cryptocurrency forex and trading platform, believes Bitcoin’s current price already reflects most of the woes of 2022 and will only fall if another major crypto firm collapses or Wall Street suffers. a massive liquidation of risky assets.
Finally, Vijay Ayyar, vice president of Luno, believes that Bitcoin will fall to a new low if the market absorbs the selling pressure caused by the capitulation of the miners. Indeed, many cryptocurrency mining companies are no longer able to service their debts due to rising energy costs and falling Bitcoin prices. Therefore, most of these companies find themselves forced to liquidate their BTC reserves to balance their balance sheets.
Traditional investors remain pessimistic
Eric Robertson, a senior analyst at Standard Chartered, predicted in a report released on Dec. 5, 2022 that Bitcoin would drop to $5,000 due to successive bankruptcies of several crypto firms.
For his part, investor Mark Mobius, a major cryptocurrency critic, believes the Federal Reserve’s quantitative tightening policy will drive the price of Bitcoin down to $10,000 in 2023. Note that Mr. Mobius predicted the crash of FTX could bring down the S&P 500 index.
“Bitcoin price predictions have become futile”
Antoni Trenchev, CEO of Nexo, has a completely different view. According to him, since external factors interrupted Bitcoin’s bullish trajectory last year, forecasts have become futile. As a reminder, Trenchev predicted that BTC will reach a price point of $100,000 in 2023.
Laith Khalaf, an analyst at AJ Bell, also believes that “price predictions are useless because cryptocurrency market behavior is driven by investor sentiment.”
While analysts’ opinions remain highly mixed, a poll on Twitter conducted by Dan Held, the marketing director of Trust Machines, shows that the bear market has made the cryptocurrency community much more realistic.
While predictions range from one extreme to the other, most respondents to Dan Held’s survey expect the price of Bitcoin to reach between $30,000 and $35,000 this year.
Davinci Jeremy, a crypto coach, provides a course of $35,000 for the first cryptocurrency in the world. For his part, the marketing director of Relai, a cryptocurrency savings and investment application, he answered : “1 BTC will cost 1 BTC”.
Also note that crypto analyst Wendy O predicted that the price of Bitcoin would drop to $10,000 by the end of 2022. Deutsche Bank, which was a bit more optimistic, predicted that the asset would close year with a price tag of $28,000.
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