When Bitcoin goes down, everything goes down. Generally, when Bitcoin goes up, everything goes up. So with such wide predictions, what are crypto investors to do? Well, diversification is one option, but that doesn’t have quite the same benefits as it does in traditional investment markets. How should investors approach Bitcoin investing in 2023? Whatever happens, 2023 is certainly going to be a rollercoaster ride for those in the crypto world. However, many would say digital assets are still in their infancy and the best is yet to come. The authors of the piece cite Bitcoin’s slow adoption amongst everyday users and unsuitability as a stable investment. To some, this assessment is too black and white. Ulrich Bindseil and Jürgen Schaaf argued “it is an artificially induced last gasp before the road to irrelevance – and this was already foreseeable before FTX went bust and sent the bitcoin price to well below $16,000.” It called in November that Bitcoin’s latest fluctuation and the volatility of 2022 was the final nail in the coffin for the cryptocurrency, despite the rally in Q4. The European Central Bank was even harsher with its estimations. The call “ materially outside of the market consensus or our own baseline views.” It’s worth noting Standard Chartered included this as part of their ‘surprise’ predictions for markets in 2023. If you’re panicking, there’s no need to run for the hills yet. Not great for those with skin in the game, but a potential opportunity for those looking to get into Bitcoin while the prices are low. Hitting the $5,000 mark would be around a 70% drop from its current $17,000 market price. Ominously, Robertsen predicted with mass tech sell-offs and plunging share prices, the “damage has been done” for Bitcoin. He wrote: “More and more crypto firms and exchanges find themselves with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets.” The bank’s global head of research, Eric Robertsen, made the call in December. The uglyĬonsumer bank Standard Chartered has predicted Bitcoin prices will fall to as low as $5,000. Only time will tell if this prediction comes true. Inflation has wreaked havoc on the crypto market in 2022 and may do the same this year. What does this mean for crypto? More investors and institutions could sell up, putting pressure on the market once more. ![]() ![]() And we will have another inflation spike,” Burry wrote on Twitter. Fed will cut and government will stimulate. “We are likely to see CPI lower, possibly negative in 2H 2023, and the US in recession by any definition. While not an outright crypto prediction, legendary investor Dr Michael Burry has called we haven’t seen the last of inflation peak. He cites higher energy prices and Ripple’s SEC lawsuit as key factors in the continued drop. Mobius’ prediction has been echoed by VanEck Investments, whose head of digital assets research Matthew Sigel says Q1 will see Bitcoin hit $10-$12,000. As a result, many are taking the veteran investor’s latest warning as a sure sign the crypto winter isn’t over yet. Mobius’ predicted in 2022 that Bitcoin would drop further to $20,000 when the price hit $28,000 back in May. His reasoning is that the US Federal Reserve’s tightening monetary policy and rising interest rates will further scupper the Bitcoin market. Mark Mobius, the billionaire founder of Mobius Capital Partners, called in early December that Bitcoin will fall further to bottom out at $10,000 in 2023. These less outlandish figures calling steady growth will be a relief to those who watched their crypto portfolio tank in 2022. These whales have the potential to step in and save the day, should the market need it.ĬIO of crypto hedge fund Arcane Assets, Eric Wall has said Bitcoin’s $15,400 price “was the bottom” and predicts the price will “pump above $30k”. Her reasoning? Crypto whales, an elusive group of wallets that account for roughly 15% of the entire Bitcoin supply according to BitInfoCharts. Given her prediction last year that Bitcoin would bottom out at $10,000 wasn’t too far off the mark, many traders are taking Alexander’s word as gospel. Professor of Finance at Sussex University, Carol Alexander has called a $30,000 Bitcoin price increase in the first half of 2023, eventually hitting $50,000 by the end of the year. Bitcoin fans will certainly be keeping an eye on these two predictions for the next couple of years. Draper suggested on Twitter his prediction will “certainly before the halvening”. Milne suggests prices could hit massive highs of $300,000 by the end of next year and said “this was no time to be bearish”. Bitcoin halving counteracts inflation and keeps the amount of Bitcoin in circulation at a steady rate. ![]() This is where the reward for Bitcoin farming will halve, a process that’s coded to happen every four years. Both men cite the upcoming halving in 2024 as a key factor in 2023’s performance.
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