After a turbulent 2022, in which bitcoin closed with negative return of 63%, there are mixed opinions among analysts about the evolution of the cryptocurrency price for 2023. Stocks had a difficult year, with the S&P 500 index closing with a loss of 17%, but in the case of bitcoin the drop was almost four times greater.
In bitcoin’s 14-year track record, 2022 was the third year it closed in the red. After the all-time high on November 9, 2021, bitcoin starts 2022, trading at USD 46,197. This is 31% below the November high of USD 67,549.
The growing coupling of bitcoin with stocks favored the downward trend at the beginning of the year, as the Fed’s measures to combat inflation raised hopes of an interest rate hike, which affected stocks and the price of bitcoin alike at the beginning of January, as reported by CryptoNews.
However, the U.S. Department of Labor’s announcement in mid-January of an increase in inflation to 7% triggered a rally in the BTC price, as reported by CryptoNews. This rise led bitcoin to reach its annual high at the end of March, when it touched USD 48,000.
After March, a downward trend prevailed for the rest of the year, both due to global inflation and restrictive central bank policies aimed at slowing spending and slowing economic growth.
Negative predictions on the price of BTC
In this context of greater losses for bitcoin than for stocks, the banking sector, which has mostly opposed bitcoin, leads the negative valuations of the first cryptocurrency for 2023. The multinational bank Standard Chartered predicts a further drop in the price of bitcoin in 2023 of 70%, which would bring it to the vicinity of USD 5,000.
I had a decent track record for predictions until 2022. A combination of macro influence and full-retard actions has forced #Bitcoin to break most models and completely detatch from fundamentals
So let's try again…
— Alistair Milne (@alistairmilne) December 30, 2022
Standard Chartered’s position coincides with comments by the European Central Bank (ECB) that bitcoin’s recent phase of stability was “artificially induced” and that it was bitcoin’s “last gasp before the crypto-asset went down the road to irrelevance”.
One of those who sees no future for bitcoin is the 2013 Nobel Laureate in Economics, Robert Shiller, who believes that the pioneering cryptocurrency will disappear because it is a passing fad, according to CryptoNews. While Paul Krugman, another Nobel laureate, assures that the bitcoin (BTC) ecosystem will soon become extinct.
Analysts’ views on bitcoin
Contrary to the opinion of traditional finance, other bitcoin analysts predict a bitcoin bull cycle in 2023 that will surpass $50,000. One of those who holds that opinion is the author of the book Trading Wisdom: 50 Lessons Every Trader Should Know, trader @BigCheds, who states that “$50,000 would triple the investment in BTC at the current price. Big gains if we accumulate on weakness. I’m going to start being grateful and not greedy.”
On the other hand, analyst Michael van de Poppe shared an analysis of bitcoin’s price next year to his Twitter followers, in which he pointed to $50,000 by mid-2023.
In the chart, Van der Poppe points to a price range between USD 45,000 and USD 50,000 by mid-2023, possibly a product of a “relief rally.”
Famed capitalist Tim Draper, who had previously predicted that bitcoin would reach USD 250,000 by early 2023, now thinks it will reach that mark by mid-2023.
In an interview with CNBC, Draper said that, because of the uproar caused by the FTX crisis, he had postponed that prediction. “I’ve extended my forecast by 6 months. My figure for that date is still USD 250,000.”
Bitcoin, which is trading at the time of writing at 16,890, would need to appreciate nearly 1,400% to reach Draper’s proposed prediction.
High inflation rates in the U.S., in conjunction with the Fed’s interest rate hike policy, is affecting both bitcon and stock prices. Along with bitcoin’s 63% year-to-date pullback, S&P 500 has fallen 16.7%, while Nasdaq has retreated 28.8%. Since bitcoin’s peak last November of nearly USD 69,000, its depreciation has been 74.85%.
Will the price of bitcoin continue to fall in 2023?
After the chaos of the first few days of the FTX exchange collapse, Mark Mobius, co-founder of Mobius Capital Partners, told Bloomberg that he thought bitcoin would fall to $10,000. He noted that although “cryptocurrencies are here to stay,” he would not invest his or his clients’ money in bitcoin because it is “very dangerous.”
Mobius then elaborated on his forecast in an interview with CNBC, attributing the losses to rising interest rates and growing investor concern about the cryptocurrency market. He added that while he expects the bitcoin price to be around $17,000, it could fall to $10,000 this 2023.
Matthew Sigel, head of digital asset research at investment firm VanEck, foresees a similar price target. He predicts the cryptocurrency will fall to between $10,000 and $12,000 per coin in the first quarter of next year.
Sigel cites struggling cryptocurrency miners as the reason for the drop: “With Bitcoin mining largely unprofitable given the recent rise in electricity prices and lower Bitcoin prices, we predict that many miners will restructure or merge,” he wrote this month.
But cryptocurrency prices remain unpredictable
It is worth remembering that cryptocurrencies are one of the most volatile assets around. Prices fluctuate wildly, and not all experts have the same opinion.
Madeline Hume, senior analyst at Morningstar, says the unpredictable nature of digital assets makes it difficult to know when prices will stop falling.
“Bitcoin, and cryptocurrencies in general, are facing the double whammy of a crypto winter already in full swing and a difficult macroeconomic climate on the horizon,” says Madeline Hume. “Although cryptocurrencies have already fallen significantly since their November 2021 peak, the lack of fundamental valuations for these assets means we won’t know where the bottom is until we get through it, and there are no signs of a thaw yet.”
As inflation slows, energy prices stabilize, and the Ukrainian crisis (potentially) eases, Sigel predicts that the price of bitcoin could rise to $30,000 by the third and fourth quarters of 2023.
Some analysts have predicted that bitcoin could fall to $5,000 over the next year, while others have said prices could reach $250,000. Ark Investment Management experts, led by renowned investor Cathie Wood, confirm their prediction that one bitcoin will be worth more than $1 million by 2030.
Bitcoin price forecast for the first quarter of 2023, 2024-2027 according to CryptoPredictions
CryptoPredictions provides daily, monthly, and yearly forecasts for bitcoin and other cryptocurrencies. While this is one of the most accurate forecasts in the bitcoin market, it should never be taken as financial advice. Always do your due diligence before investing.
Bitcoin price forecast for January 2023
Bitcoin started the month of January 2023 at $135,300 and is expected to end the month at $19,251,060. During the month of January, the highest price forecast for BTC is $21,109,790 and the lowest is $14,354,657.
Bitcoin price forecast for February 2023
Bitcoin is expected to start February 2023 at $19,443.570 and end at $20,651.510. During February, the maximum price forecast for BTC is $21,111.034 and the minimum is $14,355.503.
Bitcoin price forecast for March 2023
Bitcoin is expected to start the month of March 2023 at $20,858.025 and end the month at $20,685.935. During the month of March, the maximum price forecast for BTC is $21,108.097 and the minimum is $14,353.506.
For the complete 2023 and 2024-2027 Bitcoin Price Predictions visit CryptoPredictions
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