The boldest bitcoin price predictions for 2023

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The deteriorating macroeconomic environment and the collapse of industry giants such as FTX and Terra have weighed on bitcoin’s price this year.

STR| Nurphoto via Getty Images

2022 was a tough year for crypto. More than $1.3 trillion has been wiped from the market value. And the price of bitcoin, the largest digital currency in the world, has fallen by more than 60%.

Investors have been caught off guard by a wave of industry slumps, from stablecoin project terraUSD to crypto exchange FTX, as well as a deteriorating macroeconomic climate. Those who have been making bitcoin price predictions for the past year have really missed the mark.

But with 2023 fast approaching, some market players have reached out with price calls ahead of what could be another volatile year.

Interest rates around the world are rising, weighing on risky assets like stocks and bitcoin. Investors are also watching how the FTX saga, which culminated in the arrest of founder Sam Bankman-Fried in the Bahamas, will unfold.

CNBC lists some of the boldest price calls for bitcoin in 2023.

Tim Draper: $250,000

Bitcoin bull Tim Draper had one of the most bullish calls on bitcoin of 2022, predicting the token would be worth $250,000 by the end of the year.

In November, the billionaire venture capitalist said he extended the timeline for that prediction to mid-2023. Even after FTX’s collapse, he is confident that the coin will reach the quarter-million mark.

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

Bitcoin would have to rise 1400% to trade at this level.

Despite falling prices and drying trading volumes, Draper says there may be reason to suspect that the market has bottomed out.

“I suspect that the halving in 2024 will have a positive effect,” he said.

The halving, or halving, is an event that takes place every four years where bitcoin rewards for miners are cut in half. This is seen by some investors as positive for the price of bitcoin as it reduces supply. The next halving is expected to occur in 2024.

Bitcoin miners, who use energy-guzzling machines to verify transactions and create new tokens, are being squeezed by falling prices and rising energy costs.

These players accumulate huge piles of digital currencies, making them one of the biggest sellers on the market. With miners offloading their holdings to pay off their debts, this should remove most of the remaining selling pressure on bitcoin.

This is a good sign for bitcoin historically, said Vijay Ayyar, vice president of business development at Crypto Exchange Luno.

“In previous bear markets, miner capitulation has generally signaled major lows,” Ayyar told CNBC. “Their production costs are getting higher than the value of bitcoin, so some miners are shutting down their machines…or they have to sell more bitcoin to keep their business going.”

“If the market reaches a point where it sufficiently absorbs this selling pressure from miners, it can be assumed that we will see a period of bottoming out.”

Standard Charter: $5,000

For some market players, the worst is yet to come.

In a Dec. 5 research note, Standard Chartered said bitcoin could fall to $5,000. The forecast, one of the bank’s “surprises” that is “undervalued” by markets, would represent a 70% drop from current prices.

“Returns are crashing with tech stocks” in Standard Chartered’s nightmare scenario for 2023, “and while Bitcoin sales are slowing, the damage is already done,” said Eric Robertsen, the bank’s global head of research.

“More and more crypto companies and exchanges are running out of liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets,” he added.

Robertsen said the scenario has a “non-zero probability of occurring in the next year” and is “substantially outside of market consensus or our own core beliefs.”

Mark Mobius: $10,000

Veteran investor Mark Mobius has had a relatively successful 2022 in terms of price call. In May, he predicted that bitcoin would drop to $20,000 while trading above $28,000.

He said bitcoin would drop to $10,000 in 2022. That didn’t happen. However, Mobius told CNBC it is sticking to its $10,000 price call in 2023.

The investor, who made his name at Franklin Templeton Investments, told CNBC that his bearish case for bitcoin came from rising interest rates and the US Federal Reserve’s general tightening of monetary policy.

“With higher interest rates, the appeal of holding or buying Bitcoin or other cryptocurrencies becomes less attractive, because simply holding the coin does not earn interest,” Mobius said. by email.

Carol Alexander: $50,000

Carol Alexander, a professor of finance at the University of Sussex, was not far off the mark with her prediction that bitcoin would drop to $10,000 by 2022.

Now she thinks cryptocurrency may be profit-oriented, but not for reasons you might expect.

The catalyst would be more dominoes from the FTX fallout swing, Alexander said. If that happens, she expects bitcoin price to move above $30,000 in Q1 and then $50,000 in Q3 or Q4.

“There will be a controlled bull market in 2023, not a bubble — so we won’t see the price break out like before,” she told CNBC.

“We will see a month or two of flat prices interspersed with range-bound periods and probably some short-lived crashes.”

Alexander’s reasoning is that as trading volumes with end traders evaporate, large holders known as “whales” are likely to step in to support the market. The 97 richest bitcoin wallet addresses account for 14.15% of the total supply, according to fintech firm River Financial.

Some investors have given up trying to predict the price of bitcoin. For Antoni Trenchev, CEO of crypto lending platform Nexo, the recent events are a sobering moment.

Bitcoin was on a “positive path” earlier in 2022, with increasing institutional adoption, but “a few major forces have come into play,” he said.

Trenchev once predicted that bitcoin would reach a high of $100,000 in early 2023. Now he is done trying to predict the price.

Laith Khalaf, a financial analyst at AJ Bell, suggested that attempts to predict the price of bitcoin are futile.

“We could sit here talking about this time next year and it could be $5,000 or $50,000. I just wouldn’t be surprised because the market is so heavily driven by sentiment,” he said. he told CNBC’s “Squawk Box Europe.”

Not all news on the site reflects the site’s point of view, but we automatically transmit and translate this news through programmatic technology on the site and not from a human editor.

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