2022 was a challenging year for cryptocurrencies, including Bitcoin and Ethereum, with Bitcoin losing approximately 65% of its market value. Unforeseen events such as the Terra Luna crash, FTX fall, and macroeconomic conditions caught crypto enthusiasts off guard.
However, 2023 started strong for cryptocurrencies, showing signs of recovery. Bitcoin rose an average of 0.39 in July, reaching around $31,000. As of November 9, 2023, Bitcoin is at $36,815, with a market capitalization of $719.29 billion and a market volume of $25.05 billion.
Despite this recovery, questions remain about Bitcoin’s future. Will it rise again in the remaining months of the year, or will it crash as it did in 2022?
After crossing the $31,000 mark, Bitcoin began showing a bearish trend, trading below $30K. Despite this, it has managed to gain almost 15% monthly, according to CoinMarketCap charts, and is now trading at its highest level since May 2022 at $36,815.
Bitcoin is under pressure due to inflation issues in emerging economies like the U.S. and the U.K. The U.S. Federal Reserve has responded by hiking interest rates by 25 basis points. Experts see major resistance near the $29,800 level, with the next major resistance at the $30,400 level.
This isn’t the first time Bitcoin has faced pressure. It fell below the $26,000 level, a three-month low, when the U.S. Securities and Exchange Commission sued Binance, one of the world’s leading cryptocurrency exchanges, and its founder and CEO, Changpeng Zhao (CZ).
The SEC accused Binance of creating separate entities to evade U.S. federal securities laws and alleged that a firm owned by CZ artificially inflated the trading volume of crypto assets listed on its Binance U.S. platform.
Cryptocurrency experts believe that if Bitcoin maintains its $30,000 level, it could bounce back. As of November 9, 2023, it is leading at $36,815.
In April 2023, Bitcoin touched the key resistance of $30,000 for the first time since June 10, 2022, then dipped below to $26,000, and has now risen to $36,815. Experts believe Bitcoin must maintain the $31,000 level or higher to reach $60,000 by the end of 2023.
However, the recovery path is long, as Bitcoin is still down almost 50% from its all-time high. At the start of the year, it plunged below $20,000. Factors such as the deepening banking crisis in the U.S., the weakening dollar index, and cooling inflation have helped Bitcoin and other digital currencies recover.
The future of Bitcoin is uncertain, and retail investors should be cautious. Bitcoin is still trading low, almost 50% from its all-time high, due to macroeconomic conditions in countries like the U.S. and the U.K.
India’s stance on cryptocurrencies remains firm, with the government bringing all crypto-related transactions under the Money Laundering Act. This move has been praised by the industry as a step towards regulation.
Bitcoin’s halving event in 2024, which reduces BTC rewards to miners by 50%, is seen as a positive for Bitcoin’s price as it contracts supply. Historically, halving has been a good sign for Bitcoin’s price.
Large investors, or “Bitcoin Whales,” have started accumulating Bitcoin again. Data from on-chain aggregator Santiment shows that large Bitcoin whales are holding between 1,000-10,000 BTC in their wallets, indicating potential recovery signs in Bitcoin’s price.
Bitcoin has rallied more than 80% since the start of the year, surpassing several other major assets and providing significant returns for those who bought Bitcoin at dips.
Marshall Beard, chief strategy officer at crypto exchange Gemini, believes Bitcoin could break its all-time highs this year. He said, “$100,000 price figure is an “interesting number if bitcoin gets to its previous record high of near $69,000”.
If Bitcoin reaches this figure, it would need to show an upside of 270% to reach the $100,000 level.
Paolo Ardoino, chief technology officer at Tether, also has a positive view on Bitcoin. He said BTC could “retest” its all-time high of around $69,000.
However, some investors hold a bearish view on Bitcoin, believing it could fall soon. They see the current rally as a “bull trap” rather than a “bull run”. Mark Mobius, the billionaire founder of Mobius Capital Partners, predicted a significant fall in 2022, saying Bitcoin could drop to the $10,000 range.
Matthew Sigel, head of digital assets research at VanEck, a global investment manager, sees BTC dropping to $12,000 levels due to higher energy prices.
Standard Chartered predicted that BTC would fall to $5,000 levels in 2023. Crypto experts believe that rising interest rates and tighter monetary policy will prevent BTC from rebounding sharply in the future.
Despite these predictions, Bitcoin has shown resilience in the face of several downfalls, emerging stronger each time. This resilience gives crypto enthusiasts confidence in investing in decentralized currencies. However, trading Bitcoin should be done with the understanding that the investment may not yield the anticipated returns.
Let us know what you think, please share your thoughts in the comments below.