Experts Predict Bitcoin to Go Up or Down From Here

2022 was a challenging year for crypto. The market lost over $1.3 trillion. Bitcoin, the largest digital currency, suffered a more than 60% price drop.

A series of industry crashes, including the collapse of TerraUSD, a stablecoin project, and crypto exchanges (FTX), caught investors unaware. This was in addition to a worsening macroeconomic situation. Many people made predictions about the future price of bitcoin in the past year. really missed the mark.

Market players have made price calls for 2023, which could be volatile.

Global interest rates have risen, which makes it more difficult for investors to invest in stocks and other risk assets like bitcoin. Investors are also keeping an eye on the FTX saga which led to Sam Bankman Fried being arrested in the Bahamas.

CNBC offers the boldest predictions about bitcoin prices for 2023.

Tim Draper, a bitcoin bull, made one of the most optimistic predictions about bitcoin for 2022. He predicted that bitcoin would reach $250,000 by the end of the year.

In November, the billionaire venture capitalist announced that he was expanding the timeline for making this prediction to mid-2023. He is certain that the coin will surpass a quarter-of-a-million mark even after the collapse of FTX.

“My assumption is that since women control 80% of retail spending, and only 1 in 7 bitcoin wallets are currently held by women that the dam is about to break,” Draper told CNBC via email.

Bitcoin must rally 1,400% to trade at this level

Despite their low prices, trading volumes drying upDraper believes there are reasons to believe that the market is at a bottom.

“I suspect that the halvening in 2024 will have a positive run,” He stated.

Halving is also known by the name halvening. event that happens every four years This is where bitcoin rewards for miners have been reduced by half. Some investors see this as a positive effect on bitcoin’s price, as it lowers supply. In 2024, the next halving is expected.

Bitcoin miners, who use powerful machines and computers to verify transactions and create new tokens, are under pressure due to the slump in prices and rising energy costs.

These people accumulate large amounts digital currency. These people are some of the most sought-after sellers on the market. This should lower the selling pressure for bitcoin, as miners now have the option to sell their holdings in order to pay off debt.

Vijay Ayyar serves as vice president for corporate Development at Luno, a cryptocurrency exchange.

“In prior down markets, miner capitulation has usually indicated major bottoms,” CNBC spoke with Ayyar. “Their cost to produce becomes greater than the value of bitcoin, hence you have a number of miners either switching off their machines … or they need to sell more bitcoin to keep their business afloat.”

“If the market reaches a point where it’s absorbing this miner sell pressure sufficiently, one can assume that we’re seeing a bottoming period.”

Some market participants fear that the worst might happen.

Standard Chartered reported bitcoin being mentioned in a December 5th research note. may sink as low as $5,000. The prediction is one of many items on the bank’s wishlist. “surprises” These are being “under-priced” Markets predict a 70% drop of prices from current levels.

“Yields plunge along with technology shares” in Standard Chartered’s nightmare 2023 scenario, “and while the Bitcoin sell-off decelerates, the damage has been done,” Eric Robertsen was the global head for research at Bank.

“More and more crypto firms and exchanges find themselves with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets,” He also added.

Robertsen said that the scenario is now a “non-zero probability of occurring in the year ahead” And it also falls “materially outside of the market consensus or our own baseline views.”

Mark Mobius is a veteran investor who had a very successful 2022 when he called the price. He predicted that bitcoin would plummet to $20,000 if it traded over $28,000 in May.

He predicted that bitcoin would fall to $10,000 by 2022. However, it did not happen. However, Mobius told CNBC He remains firm on his $10,000 price call in 2023.

CNBC received information from an investor from Franklin Templeton Investments stating that his bear case against Bitcoin was based on rising interest rate and tighter monetary policies by the U.S Federal Reserve.

“With higher interest rates, the attraction of holding or buying Bitcoin or other cryptocurrencies becomes less attractive since just holding the coin does not pay interest,” Mobius said via email.

Carol Alexander, Professor at Sussex University in Finance, was correct when she predicted bitcoin would drop to $10,000 by 2022.

Now, she thinks the cryptocurrency could be set for gains — but not for reasons you might expect.

Alexander said that the catalyst would be more dominos due to the FTX tipping. By the end of quarter one, bitcoin will have reached $30,000 In quarter three and fourth, it will reach $50,000.

“There will be a managed bull market in 2023, not a bubble — so we won’t see the price overshooting as before,” CNBC interviewed her.

“We’ll see a month or two of stable trending prices interspersed with range-bounded periods and probably a couple of short-lived crashes.”

Alexander claims that large traders should be aware of the fact that their trading volumes are declining with traders on edge. “whales” Stabilizing the market will be a priority for the government. River Financial reports that 14.15% of the total supply is derived from the richest 97 Bitcoin wallet addresses.

Some investors have stopped trying to predict bitcoin’s price. Antoni Trenchev is the CEO of Nexo crypto lending platforms. Recent events have been very concerning.

Bitcoin was available on a “positive path” Although institutional adoption increased in 2022, it was much earlier than 2022. “a few major forces interfered,” He stated.

Trenchev forecast bitcoin’s rise up to $100,000 in the early 2023. He has now given up on trying to predict bitcoin’s price.

Laith Khalaf, a financial analyst at AJ Bell. suggested attempts to forecast bitcoin’s price are futile.

“We could be sitting here talking this time next year and it could be at $5,000 or 50,000 it just wouldn’t surprise me because the market is so heavily driven by sentiment,” CNBC’s Interview with Mr.Squawk Box Europe.“