Although a fall is possible, the price of Bitcoin should increase considerably in the medium term. What are the reasons for such an increase?

Bitcoin is currently experiencing a good phase again. After the course had to accept a stronger drop a week ago, the value of the cryptocurrency has risen sharply in the last 7 days (higher than 13 percent).

The price of Bitcoin once again exceeded an important mark a few days ago at $25,000. This brings the cryptocurrency back as strong as last time in the second quarter of 2022. That could be halfway to a new high in 2023. $50,000 is a price target that is realistic for this year.

Said price could be seen again in the middle of the year. The end of the second quarter or the beginning of the third quarter of 2023 seems realistic. Even if there were to be another accident, a peak at that level would still be possible this summer.

Mentioned below are three good reasons why Bitcoin may already hit the $50,000 mark this year.

2019 Could Repeat Itself

In order to predict the evolution of prices in the crypto market in the medium and long term, historical comparisons can always be made. This comparison makes sense if we go back 4 years and look at 2019.

In 2019 there was very similar price action, as compared to 2023. Overall, the Bitcoin price increased from $3,500 to $10,500. If a factor of 3 on the price action for this year is considered, it is possible to arrive at around $50,000. The previous bear market shows a lot in common with the last one.

Stable FIAT Monetary Policy

It can be assumed that the percentage increases in the price of Bitcoin will decrease in repeated cycles. But even then, $50,000 could still be possible, assuming that Bitcoin is being severely undervalued right now.

This could be the case, because in 2022 the Bitcoin price fell compared to FIAT currencies such as the US dollar and euro, as central banks have dramatically increased interest rates. So far, that policy appears to be stabilizing, and hikes shouldn’t happen any time soon. That should increase the value of Bitcoin.

More Trust after Regulation

In 2022, many bankruptcies affected the cryptocurrency market. Celsius, Terra, or FTX: all these bankruptcies also hurt Bitcoin. At the moment, the SEC deals mainly with Altcoins. Stronger regulation of altcoins could follow.

In this case, the winner would be Bitcoin. Better regulation would increase trust in Bitcoin and could drive its price higher than altcoins. BTC dominance should increase. Thus, a price of $50,000 would be easier to reach.

By Audy Castaneda

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