Blockware Solutions 2023 Bitcoin Forecast – Bitcoin Magazine

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Blockware Intelligence, the research arm of Blockware Solutions, released its forecast for 2023, which indicated, among other things, that the bottom price of bitcoin could be reached soon.

The report included a broader macroeconomic overview and forecast, as well as Bitcoin’s response as well as on-chain indicators suggesting potential future moves. Short-term holder realized price (STH RP), as shown by the report, is a more volatile and quick-to-move metric determined by the price of coins being moved for a certain period of time, while short-term holder realized price Long Term (LTH RP) is a less volatile and stickier metric determined by the price of coins held that have not been moved for longer periods of time. When price drops below the LTH RP, which means most long-term holders are underwater, it often coincides with previous lows in the bear market. The report suggests that bitcoin price is likely to reverse both the LTH RP and STH RP, which it currently sits below, which could signal the bottom of the bear market.

Source: BlockwareSolutions

The report also noted the recent collapse of several exchanges, namely Celsius, BlockFi, and FTX, which helped increase BTC’s self-custody. Self-preservation of bitcoin tends to raise prices as the potential for price suppression created by exchanges is eliminated.

Source: BlockwareSolutions

A significant increase in the number of on-chain bitcoin users is also expected. During the previous cycle of 2018, the number of on-chain users increasing at an increasing rate indicated the start of the bull run. We again see a positive momentum shift in the number of on-chain entities, suggesting growing adoption and potential seeds for the next bull market.

Source: BlockwareSolutions

Additionally, it is suggested that current state-of-the-art ASICs, namely the S19XP, may retain their value longer than previous generations of ASICs as manufacturers move closer to what is thermodynamically possible. This would have ramifications on ASIC price and future cash flow plans for miners.

This is also factored into the following theory that Bitcoin hash rate growth will slow progress in 2023, noting three factors:

“1. Commodization ASIC

2. Lack of mining investment in 2022

3. Global energy crisis (lack of cheap energy available).

Source: BlockwareSolutions

The global energy crisis is more detailed – as regulators put more pressure on oil and hydrocarbon power sources, driving up prices even further, miners with fixed power purchase agreements will be those who will be sheltered from this volatility.

The report ends with the prediction that in 2023, the United States will be the predominant destination for bitcoin mining due to the strong dollar, stable energy prices here, and lesser impacts from climate change. inflation in the country.

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