- Bitcoin has surged more than 60% year-to-date, mitigating losses in a tough 2022.
- Insider spoke to four crypto experts about what’s next for Bitcoin in 2023.
- A blockchain executive said Bitcoin could not hit new all-time highs until U.S. inflation is brought under control.
After a turbulent 2022, bitcoin is up more than 60% year-to-date, pushing the total value of the cryptocurrency market to well over $1 trillion.
In addition to the collapse of Sam Bankman-Fried’s FTX in November, there were a number of bankruptcies in other industries earlier this year, including centralized financial firm Celsius, brokerage firm Voyager Digital and hedge fund Three Arrows Capital. Since then, the industry appears to have bounced back.
While bitcoin’s moves can be difficult to predict, there are some things to watch out for this year to see where the world’s largest cryptocurrency is headed, an expert told insiders.
First, Charmin Ho, head of cryptocurrency insights at digital asset exchange Bybit, told an insider that bitcoin cannot hit new all-time highs until the macroeconomic environment recovers. The cryptocurrency traded at a record $67,566 in November 2021, according to. Messari.
“A potential headwind, however, is the projection that a persistently inverted yield curve could lead to recessions in the US, Europe and other major economies,” Ho told an insider. “Add this to a host of other unfavorable macro factors such as inflation and many investors would rather sit on the sidelines.”
“This is partly responsible for the near-flat price volatility we are experiencing,” Ho added.
However, a significant technical event for the Bitcoin network, the halving could significantly boost the price of the token. The halving is estimated to occur in April 2024, but Ho said Bitcoin could fall before the halving.
“The Bitcoin halving is important because it cuts the production of new Bitcoins on the network in half,” Ho said. “This will reduce the supply of freshly minted coins, leading to higher prices if demand continues.”
“Litecoin, which is halving this year, is up about 90% from its Q3 2022 low,” Ho said. “So, using this as a guide, we could see a similar 90% move from Bitcoin’s Q3 2023 price, with a rough target value of around $60,000.”
Jagdeep Sidhu, chairman of the Ciscoin Foundation, expressed similar optimism about the halving.
“While we have weathered some recent storms, the resilience of the crypto ecosystem remains evident. Markets have recovered from the ashes of FTX, demonstrating their innate ability to absorb shocks and evolve. ‘” Sidhu told an insider.
“We are on the cusp of an exciting development in the world of cryptocurrencies as the next Bitcoin halving approaches and crypto dominance is about to peak.”
Bitcoin could reach $38,000 by the end of the year, up 41% from current trading levels, once U.S. inflation subsides and regulations on digital assets become clearer, another crypto executive said. told to
“My base case is that Bitcoin trades in the $25,000 to $32,000 range for the remainder of 2023,” said Tim Shan, COO of decentralized crypto exchange Dexalot. will be done,” he said. “But if inflation remains high, I think Bitcoin could fall to this year’s lows.”
“In the short to medium term, the driver is still inflation, especially US inflation. I think core inflation is pretty sticky, but it will continue to decline in the US and the Fed will be on hold for the rest of the year,” Shang added.
David Woollinak, an ecosystem developer at blockchain infrastructure provider TRON, believes Bitcoin will end the year with a “massive rally” and could end 2023 above $35,000. ing.
“Right now, smart traders are awaiting further examination of where bitcoin and other markets will move next before committing serious capital,” Woollinak told the insider. Told. “By Q4, much of the uncertainty that has clouded the market throughout the year should ease, including the liquidation of Mt Gox Coin and the sale of BTC stockpiles seized from the black market by the US government. The same goes for concerns about