The beginning of the new year begins Bitcoin price and crypto market predictions on social media and mainstream media platforms. Experts debate whether bulls or bears will drive price action in 2023. Last year, bears took over and sent the benchmark crypto back to 2020 levels.
As of this writing, Bitcoin price is trading at $16,700, recording a small gain during the current trading session. On the higher side, cryptocurrencies continue to record sideways price action. The latter could be the dominant price action for 2023.
The best is yet to come for the price of Bitcoin
According to a report from CNBC, the price of Bitcoin has undergone extreme changes in its trajectory. Optimistic experts, such as BTC bull Tim Draper, believe that the cryptocurrency will go higher than the current level.
Draper believes that the crypto benchmark will experience a 1,400% rally, regaining previously lost territory, and surpass $250,000 by mid-2023. BTC bulls believe macroeconomic conditions will push adoption higher.
One demographic will lead this potential new wave of adoption that will coincide with the upcoming Bitcoin halving. This event is scheduled for 2024, but in the past, the market has priced it earlier. Draper said:
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 will break.
Professor of finance at the University of Sussex, Carol Alexander, believes Bitcoin could see two short-term rallies. The first can take the price of Bitcoin back to $ 30,000, and the second to $ 50,000 behind low trading volume and important players.
As FTX and Three Arrows Capital collapse, Alexander expects less competition in the market, which could provide another important player to push BTC up. The professor explained:
There will be a managed bull market in 2023, not a bubble – so we won’t see prices overshooting like before. We will see a month or two of stable price trends interspersed with limited periods and possibly some short-term crashes.
Exploring the Worst Case Scenario, How Low Is BTC?
Better macroeconomic landscape, adoption, halving and supply, and less competition. This is a factor that works for cryptocurrency.
On the other hand, Eric Robertsen of Standard Charted claims that the price of Bitcoin could return to the level of 2020 and touch $5,000. Lack of confidence from investors and more capitulation from crypto companies can lead to this scenario.
The low level of liquidity in the sector makes the situation worse. Current market conditions could experience another lower leg if the US Federal Reserve (Fed) doubles down on its hawkish monetary policy.
According to Mark Mobius, who successfully predicted the crash of BTC from $30,000 to $20,000 in 2022, if the Fed continues to tighten, the cryptocurrency could fall to $10,000. Mobius said:
With higher interest rates, holding or buying Bitcoin or other cryptocurrencies becomes less attractive because simply holding coins does not pay interest.