depends on who you listen to, Bitcoin’s price will reach $3,500 or $1 million in the next year.
Bitcoin (Bitcoin $19,524) The community has a disagreement over whether the price of tokens will soar or collapse in the next year. Most analysts and technical indicators suggest it could bottom out between $12,000 and $16,000 in the coming months. This is related to the turbulent macroeconomic environment, stock prices, inflation , Fed data and (at least according to Elon Musk ) that could last until the 2024 recession
On the other hand, influencers, BTC extremists and a range of other fanatical "scammers" believe their prices may soar to $80,000 or even higher.
has evidence to support both parties. One problem is that they may focus on different time frames. There are good reasons why BTC may decline sharply in the coming months, but may rise in mid-to-late 2023.
Reasons for the rise in BTC prices in 2023
Bitcoin bull market has historically coincided with the four-year market cycle, including accumulation (buy), upward trend, distribution (sell) and downward trend. We generally expect the accumulation of this process to begin in 2023, although some believe it may be delayed until 2024.
Nevertheless, we may see valuation rise in mid-2023 and there is evidence to support this idea. According to Kevin Svenson, when the 80-week bear market ends, we can witness the bull market begin around April.
The deflationary nature of Bitcoin, through its "halving" event, also encourages these prices to rise over time. (Halving results in halving miners’ rewards. The next plan happens in April 2024.) Despite market turmoil, the deflationary nature of Bitcoin has led to a price increase for long-term investors.
However, beware of hype. Influencers and markets are aware that greed will be sold. Ethereum’s forecast ($1,362 for Ethereum) will grow 10 times in 2023 and should be skeptical. And, despite this statement, it is unlikely that Bitcoin will reach $100,000 or even close to $100,000.
pessimistic estimates Bitcoin fell to $3,500
Other experts say we won't see a surge in the short term or even in 2023. Gareth Soloway of InTheMoneyStocks said it could even fall to $3,500:
"As regulation helps people become more confident, as regulation matures, Bitcoin will have a fulcrum...I think in the short term we'll see some rebound and then it will fall to $12,000 to $13,000, and then I'll worry that your price will be below $10,000 to $8,000, and even at worst it could fall to $3,500, which is a very small percentage, but that's the equivalent of the collapse of Amazon in the Internet age."
If BTC drops to $12,000 With USD or below, miners may not be profitable to run the ecosystem. This will mean that the transaction is no longer processed, and this issue may weaken the industry.
Let us remember that we haven't seen any strong correlation between cryptocurrency prices and mass adoption, which is not a healthy model. Cryptocurrency prices have always been a function of the amount investors (mostly whales and institutions) invest in a given asset through derivative contracts and other financial instruments.
The times change but bullish sentiment
There are other problems that need to be solved regarding the BTC price cycle. Some believe that these four-year cycles may no longer apply for a variety of reasons. One is that unlike previous cycles, most BTC is not the only child on the block.
It is competing with many cryptocurrencies that perform well in most aspects, as well as decentralized finance (DeFi), GameFi, irreplaceable tokens (NFT), decentralized autonomous organizations (DAO), web3 startups and many more profitable investment mechanisms. Participating in Web3 and DeFi requires purchasing ETH, not BTC.Many people believe that BTC will rise as people will be “more interested in DeFi”. This is unfounded.
However, it remains one of the most popular token institutions in the cryptocurrency world and also the signature name of the cryptocurrency world. Overall, Bitcoin prices are likely to soar in mid-2023, although we will see a decline in the coming months.
On October 18, over 38,000 BTC worth $750 million was transferred from cryptocurrency exchanges to private wallets, indicating that whales are accumulating and storing turbulent times. The movement of the exchange is often interpreted as a bullish indicator. Due to interest in institutions and pension plans, the author of Rich Dad Poor Dad Robert Kiyosaki is optimistic about Bitcoin. As he said in his tweet on October 7:
"Why buy gold, silver, bitcoin? Bank of England fulcrum means buying more GSBC. When pensions almost collapsed, it exposed that Central Bank can't solve... Inflation. Pension funds have been investing in G&S. Pension funds are now investing in bitcoin. They know that fake dollars, stocks and bonds are all toast."
"Doomsday" Bitcoin soars?
BTC Extremists ironically believe that the collapse of existing systems and the dollar (particularly) will benefit Bitcoin and the wider "decentralized" community. They claim that a government collapse will require a new financial system and that Bitcoin is in perfect condition.
The idea is that there is a clever reverse between the collapse of legal infrastructure and the rise in BTC prices, where more volatility equates to more price increases. When the world collapses, decentralized communities only “fill in the gaps.”
Of course, the collapse of the petrodollar will cause energy prices to soar. This also means that the Bitcoin ecosystem may be unsustainable due to mining issues. This is an issue Ethereum solved through a September merger that removed miners from the equation and resulted in a 99.99% reduction in its carbon footprint.
Moreover, a full crash also means that the assessment of the US dollar is worthless. If hyperinflation begins, if $1 million is not used to buy a loaf of bread, then how much is the value of $1 million in BTC? Volatility is usually a friend of Bitcoin – but only at a certain point.
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