2022 is the year of disaster for cryptocurrencies. From the stable currency project terraUSD to the cryptocurrency exchange FTX, the price of Bitcoin has plummeted by 60%, erasing its market value of over 1
2022 is the year of disaster for cryptocurrencies. From the stable currency project terraUSD to the cryptocurrency exchange FTX, the price of Bitcoin has plummeted by 60%, erasing its market value of over 1.3 trillion US dollars.
Will the wave of cryptocurrency collapse stop in 2023? How will the continuously deteriorating macro environment affect the cryptocurrency market? In the new year, some investors have made predictions about the future price trend of the Bitcoin.
Bitcoin bull Tim Draper predicted last year that the value of Bitcoin would reach $250000 by the end of 2022.
Despite a series of events such as FTX crash. But Tim Draper remains optimistic. Last November, he predicted that Bitcoin would peak at $250000 by mid-2023.
At the current price of $16686, Bitcoin needs to increase by 14 times to reach this level.
Draper told the media that women control 80% of retail spending, but currently only one seventh of Bitcoin wallets are owned by women, and their investment potential has not yet been fully unleashed. Moreover, despite the current low price of Bitcoin and depleted trading volume, there is still reason to suspect that the market has bottomed out.
Standard Chartered Bank holds a completely opposite view. Faced with a highly sluggish economy in 2023, the bank has given quite conservative expectations for the price of Bitcoin.
Standard Chartered Bank stated in a research report on December 5th last year that Bitcoin prices will continue to decline by another 70% to $5000 in 2023.
Eric Robertsen, Global Research Director at Standard Chartered Bank, believes that although his Bitcoin sell-off has slowed down, the downward trend has become a foregone conclusion. More and more cryptocurrency companies and exchanges will expose the problem of insufficient liquidity, more and more institutions will go bankrupt, and investors' confidence in digital assets will collapse
Eric believes that this black swan event, which greatly deviates from market expectations, may occur within the next year.
Senior investor Mark Mobius made a relatively accurate prediction of the price of Bitcoin in 2022.
Last May, when the transaction price of Bitcoin exceeded $28000, he predicted that the price of Bitcoin would drop to $20000. After one month, the prediction will come true.
Recently, Mobius told the media that considering rising interest rates and the Federal Reserve's tightening monetary policy, Bitcoin prices will fall below $10000 in 2023. As interest rates rise, the attractiveness of holding or purchasing Bitcoin or other cryptocurrencies diminishes, as holding Bitcoin alone has no interest
Carol Alexander, a finance professor at the University of Sussex, gave similar predictions in 2022 and also believed that Bitcoin would fall to $10000 by 2022.
But her view has shifted towards optimism. Alexander believes that as the domino effect of the FTX thunderstorm emerges, Bitcoin trading has significantly shrunk, and "whales" holding large amounts of Bitcoin will enter the supporting market. Whales refer to those who own over 1000 Bitcoins. According to data from financial technology company RiverFinancial, the richest 97 Bitcoin wallet addresses own 14.15% of Bitcoin.
She predicts that with the help of "Whale" to rescue the market, the price of Bitcoin will exceed $30000 in the first quarter, and then reach $50000 in the third or fourth quarter.
The volatility of cryptocurrencies has led some institutions to abandon predicting the price of Bitcoin.
AJBell financial analyst Laith Khalaf said, "At this time next year, whether the price of Bitcoin is $5000 or $50000, it won't be surprising because the market is largely driven by popularity." Attempting to predict Bitcoin prices is just futile and without any intention.
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