Cryptocurrency industry insiders predict that bitcoin could reach its all-time high in 2023 and possibly reach $100,000. It comes after the bet of investors who noted that the digital currency could be $1 million in 90 days.
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Bitcoin has rallied nearly 70% so far this year – and industry insiders who spoke to CNBC remain bullish, with one saying the world’s largest cryptocurrency could reach new heights.
Bitcoin previously reached an all-time high of $68,990.90 in November 2021. Since then it has fallen by around 60%.
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Marshall Beard, chief strategy officer at US-based cryptocurrency exchange Gemini, said $100,000 could be a possibility for bitcoin.
“I think bitcoin can break all-time highs this year,” Beard said, adding that the $100,000 price figure is an “interesting number.”
Beard said that once bitcoin reaches its previous record high of $69,000, “it won’t take much more to lift it” to $100,000.
Bitcoin needs to rally around 270% to reach $100,000.
Paolo Ardoino, chief technology officer at stablecoin publisher Tether, said bitcoin could “retest” its all-time high near $69,000.
The latest record predictions mark a more optimistic outlook than in January when industry executives told CNBC they expected 2023 to be a cautious year.
Will bitcoin finally become ‘digital gold’?
Part of the industry’s positive outlook on bitcoin today actually stems from the way the asset performed during the banking turmoil caused by the the collapse of Silicon Valley Bank and the failure of two crypto-friendly lenders Silvergate Capital and Signature Bank.
Instead of crashing, bitcoin rallied.
Bitcoin supporters say this is proof that bitcoin offers an alternative to the traditional banking system as a safe place to keep money.
“I think the rally can be explained by saying, people have been scared of the banking system because it’s collapsing,” Oliver Lynch, CEO of Bittrex Global, told CNBC in an interview at Paris Blockchain Week on Thursday.
For years, bitcoin proponents have argued that bitcoin is a form of “digital gold” — a safe-haven asset that can offer investors a hedge against inflation and invest in turbulent times. But over the past few years, bitcoin has traded in correlation with stocks, particularly the tech-heavy Nasdaq.
Now there are signs of decoupling with bitcoin massively outperforming the Nasdaq, many other risk-assets and gold this year.
But bitcoin also gained hope that the banking crisis could reduce the US Federal Reserve’s ability to be aggressive in raising interest rates, which would support risk assets like cryptocurrencies.
Bet $1 million bitcoin
Discussions about the price of digital coins this year have been around since Balaji Srinivasan, investor and former chief technology officer at Coinbase, bet on March 17 that bitcoin will be $1 million or more in 90 days. He bet $2 million.
The bet was in response to a Twitter user who said he would handle $1 million if the U.S. did not enter hyperinflation.
Srinivasan argues that “the world is redenominated in Bitcoin as digital gold” as hyperinflation kicks in, erodes the value of the US dollar, and nations, individuals and companies begin to buy large amounts of bitcoin. Hyperinflation is an increase in prices in the economy.
I think for bitcoin to be a million dollars in 90 days, some crazy things happen in this world, which we don’t expect.
Marshall Beard
Chief strategy officer, Gemini
A price of $1 million in bitcoin would represent an increase of approximately 3,600% from the current price of the digital currency.
Most people have been poured cold water on this prediction.
Gemini’s Bear said “there may be a world where bitcoin reaches a million dollars” but not in 90 days as Srinivasan wagered.
“I think for bitcoin to be a million dollars in 90 days, some crazy things happen in the world, which you don’t expect,” Beard said, adding that it could take 10 years to get close to that figure.
Tether’s Ardoino echoed the sentiment that if bitcoin were to reach $1 million within 90 days, it would be an unusual economic event.
“I’m a little skeptical about it, because to be honest, I don’t expect it,” Ardoino told CNBC in an interview at Paris Blockchain Week, which aired Thursday.
“Because if bitcoin will reach a high price level, [it] it means the whole economy will collapse. I’m not sure [that] is the world we want to live in.”