After a bumpy year for crypto, here’s where experts say bitcoin price is heading next

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It’s been a tough year for crypto investors.

There was the recent implosion of FTX, an exchange previously considered relatively reliable and run by one of the most prominent figures in the crypto industry. Earlier in 2022, there was the bankruptcy of crypto lender Voyager and the collapse of TerraUSD, a stablecoin. (A stablecoin is a cryptocurrency whose price is pegged to another asset like the US dollar).

In addition to an erosion of confidence in crypto, there have been price losses mirroring stock markets amid high inflation and rising interest rates.

Bitcoin was trading at $16,607 on Thursday, down 65% year-to-date. It’s no wonder that around half of bitcoin investors lose money if they sell now, according to data from analytics firm IntoTheBlock.

This comes after bitcoin and other cryptocurrencies like ether exploded in popularity in 2021.

So what does the price of the biggest cryptocurrency have in store for us in 2023? Here’s what the experts say.

Will Bitcoin Price Continue to Fall in 2023?

Amid the chaos at the start of the FTX exchange collapse, Mobius Capital Partners co-founder Mark Mobius told Bloomberg that he expects bitcoin to fall to $10,000 per coin. . He noted that while crypto is here to stay, he wouldn’t invest his clients’ money or his own money in bitcoin because it’s too dangerous.

Mobius later expanded on his predictions in an interview with CNBC, attributing the anticipated losses to rising interest rates and growing investor concerns about the crypto market. He said that while he expects the bitcoin price to hover around $17,000, it could fall to $10,000 next year.

Matthew Sigel, head of digital asset research at investment firm VanEck, is eyeing a similar price target. He predicts that the cryptocurrency will fall between $10,000 and $12,000 per coin in the first quarter of next year.

Sigel cites struggling crypto miners as the reason for the decline: With bitcoin mining being largely unprofitable given the recent rise in electricity prices and falling bitcoin prices, we expect many miners will restructure or merge, he wrote this month.

But Crypto Prices Are Always Unpredictable

It should be remembered that cryptocurrency is one of the most volatile assets in the market. Prices fluctuate enormously and not all experts share the same opinion.

Madeline Hume, senior research analyst at Morningstar, says the unpredictable nature of digital assets makes it difficult to know when prices will stop falling.

Bitcoin, and crypto in general, are facing the double whammy of an already booming crypto winter and a tough macroeconomic climate on the horizon, Hume says. Although the crypto has already fallen significantly since its peak in November 2021, the lack of fundamental valuations for these assets means we won’t know where the bottom is until we get past it, and there is no further indication of a thaw.

Sigels’ outlook improves in the second half. As inflation declines, energy prices stabilize, and the crisis in Ukraine (potentially) ends, Sigel predicts bitcoin prices could rally back to $30,000 in the third and fourth quarters of 2023.

Some analysts have predicted that bitcoin could drop as low as $5,000 over the next year, while others said prices will climb to $250,000. Experts at Ark Investment Management, led by famed investor Cathie Wood, stand by their prediction that one bitcoin will be worth over $1 million by 2030.

So, is crypto over? Sigel writes. Not by far.

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