Perspective: To say that 2022 was a tough time for crypto is an understatement. After a long period of rising prices and enthusiastic investors, the crypto winter came last year, which led to the fall in the price of Bitcoin, the bankruptcy of companies and the displacement of more than $ 1 trillion from the market, not to mention the collapse of FTX. But what will 2023 bring? Analyst predictions vary greatly, from bitcoin almost quadrupling its previous record to hit $250,000, to the digital coin dropping to $5,000, the lowest price since 2019.
Bitcoin started 2022 at around $48,000. This is less than its highest price of almost $68,000 a few months earlier, but it was still welcome news for those who invested a few years ago when BTC was worth less than $10,000.
However, the last 12 months have been some of the worst for crypto. The collapse of the TerraUSD stablecoin and its backing coin, Luna, disrupted the industry in May. This resulted in huge crypto businesses like Celsius going bust and the market dropping below $1 trillion as the price of bitcoin and other digital assets collapsed. Then came the FTX controversy, which led to the arrest of founder Sam Bankman-Freed and lawsuits against celebrities who advertised the company in television ads.
Bitcoin has been hovering between $16,000 and $17,000 since mid-December. But what will happen to the world’s most popular cryptocurrency in 2023? CNBC Gather some forecasts from analysts, investors, and others in the industry.
Bitcoin price over the past five years. Will it rise or fall in 2023?
The most optimistic forecast comes from billionaire venture capitalist Tim Draper. He believes that Bitcoin will rise by 1400% and be worth $250,000 by the end of the year. “My guess is that since women control 80% of retail spending and only 1 in 7 bitcoin wallets are currently owned by women, the dam is about to collapse,” Draper told CNBC. He expects the situation to get even better in 2024 when the halving happens, an event that happens every four years when the reward for bitcoin mining is halved.
At the opposite end of the scale is Standard Chartered’s head of global research, Eric Robertsen, who believes bitcoin’s decline will continue to $5,000 next year, a drop of about 70% from its current price. Veteran investor Mark Mobius is equally pessimistic, believing that BTC will drop to $10,000 in 2023.
Carol Alexander, professor of finance at the University of Sussex, has good news for holders. She believes BTC will hit $30,000 in the first quarter and climb to $50,000 in the third or fourth quarters thanks to whales holding large amounts of bitcoin stepping in to help the market.
Ultimately, of course, it is impossible to accurately predict the future price of Bitcoin. It remains to be seen whether the market will recover or fall further in 2023.