Experts debate whether bulls or bears will drive price developments in 2023.
The start of the new year also marked the start of Bitcoin price and crypto market predictions, both on social media and on major platforms. Experts debate whether bulls or bears will drive price developments in 2023. Last year, the bears took over, sending the benchmark cryptocurrency back to 2020 levels.
Bitcoin is currently trading at $16,700, even managing to post a small profit during today’s trading session. On higher time scales, the cryptocurrency continues to see sideways price action.
The Best is Yet to Come for Bitcoin
According to a CNBC report, the Bitcoin price is about to undergo an extreme trend reversal. Bullish experts, such as BTC bull Tim Draper, believe that the cryptocurrency will trend higher from its current levels.
Draper is convinced that the benchmark cryptocurrency will see a 1,400% rally, regain previously lost territory, and explode to a whopping $250,000 by mid-2023. Background: BTC bulls believe, among other things, that macroeconomic conditions will significantly increase the spread.
A certain demographic will lead this potential new wave of adoption, which will coincide with the upcoming Bitcoin halving. Although this event is not scheduled until 2024, the market has historically priced in its impact much earlier. Draper comments on this:
“I expect the dam to break soon as women control 80% of retail spending and only 1 in 7 Bitcoin wallets is currently in the hands of women.”
Carol Alexander, a finance professor at the University of Sussex, also believes that Bitcoin will rise again. She sees two rallies in the short term: the first could send the Bitcoin price back to $30,000 and the second to $50,000.
With FTX and Three Arrows Capital collapsing, Alexander expects less competition in the market, which could result in other prominent players pushing BTC higher. The professor explains it as follows:
“In 2023 there will be a controlled bull market, not a bubble, so we won’t see price exaggerations like we’ve seen so far. We’re going to see a month or two of stable, range-bound price trends and probably some short dips.”
Bearish Scenario: How Low Could BTC Go?
Better macroeconomic framework, acceptance, halving and supply adjustment and less competition. These are the factors that speak for Bitcoin.
However, there are also pessimistic voices. Eric Robertsen of Standard Charted, for example, believes that the bitcoin price could return to 2020 levels and fall as low as $5,000. Lack of investor confidence and further capitulation by crypto companies could trigger this scenario.
Low liquidity in this sector makes matters worse. Current market conditions could see further downside movement if the US Federal Reserve (Fed) continues its tightening monetary policy.
According to Mark Mobius, who successfully predicted Bitcoin’s drop from $30,000 to $20,000 by 2022, the cryptocurrency could fall to around $10,000 if the Fed tightens further. Mobius emphasizes that “with higher interest rates, holding or buying bitcoin or other cryptocurrencies becomes less attractive, because just holding the currency does not earn interest.”
By Audy Castaneda
