Wild bitcoin price predictions in 2023

Will Bitcoin Fall to $5,000 or Rise to $250,000 by the End of the Year? Here are four predictions from industry experts.

If the year 2022 has been particularly hard for the crypto ecosystem, it does not prevent some experts from making predictions about the price of the queen of cryptocurrencies, bitcoin. As a reminder, bitcoin has lost nearly 70% of its value since its November 2021 all-time high of $69,000. What scenarios can we foresee in 2013?

• Most pessimistic: 5000 dollars

In a note published in early December, British bank Standard Chartered estimated that bitcoin could fall as low as $5,000 in 2023, a further 70% drop from current levels.

“More and more companies and crypto exchanges are finding themselves with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets,” said Eric Robertsen, Global Head of Digital Assets. research at Standard Chartered Bank, in a note entitled “The financial market surprises of 2023”.

For the latter, the fall of the crypto-ecosystem should be correlated with an increase in gold, the price of which may rise by 30% to $2250 per ounce. ounces.

“Gold’s resurgence in 2023 is coming [également] when stocks resume their bear market and the correlation between stock and bond prices turns negative again,” he said.

• The most realistic: $10,000

For his part, investor Mark Mobius remains slightly more optimistic than Standard Chartered, although the psychological threshold of $10,000 is starting to worry many investors. According to him, the fall in the price of bitcoin will be explained by the continuation of the increase in the rates of the Federal Reserve (Fed), which wants to fight inflation.

“With higher interest rates, the allure of holding or buying bitcoin or other cryptocurrencies becomes less appealing, as holding the coin does not earn interest,” the latter told CNBC.

CNBC further recalls that the latter was right last year, estimating that bitcoin would fall to 20,000 by the end of the year, trading around $28,000 in May.

• The most optimistic: $50,000

This prediction was made by Professor of Finance at the University of Sussex, Carol Alexander. According to her, after the bankruptcy of FTX at the end of the year, the crypto ecosystem will become more mature and ready to move towards a good recovery.

According to her, bitcoin could exceed $30,000 in the first quarter and darken towards $50,000 in the following quarters.

“There will be a managed bull market in 2023, not a bubble — so we won’t see price overruns like before,” Carol Alexander told CNBC. “We will see a month or two of flat trending price, interspersed with periods of turbulence and probably some short-term crashes.”

• Craziest: $250,000

Famous pro-bitcoin billionaire Tim Draper has made the wildest prediction for the price of the queen of cryptocurrencies. It should reach $250,000 by mid-2023. At the current bitcoin price, this would require a more than 1,400% increase in bitcoin.

“My guess 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,” Tim Draper told CNBC.

Why not. The investor is particularly hopeful about the next bitcoin halving, which will take place in March 2024, which consists of halving the rewards for bitcoin miners every four years. In fact and as a reminder, miners who secure the bitcoin blockchain are rewarded in cryptocurrency for each block validation in the blockchain.

An event that can actually have a positive upward impact on bitcoin as it creates more scarcity on this cryptocurrency.

“I suspect that the halving in 2024 will have a positive course”, assesses Tim Draper.

Despite these four predictions, some have decided to stop with this type of scenario. This is, for example, the case with Laith Khalaf, financial analyst at AJ Bell.

“We could be sitting here talking about next year and bitcoin could be at $5,000 or $50,000, that wouldn’t surprise me because the market is very much driven by emotion,” he told CNBC.

Anyway, we can never tell you enough about BFM Crypto: you should only invest what you are ready to lose.

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