Bitcoin will peak at US$42,000 in 2023: Finder survey

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Australia-based news services platform Finder said it conducted a survey in April of 32 crypto industry experts to get opinions on Bitcoin’s price outlook over the next decade. According to the average forecast for 2023, Bitcoin will reach a high of US$42,225, a low of US$17,026 and close the year at US$35,485.

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According to Ben Ritchie, director of Digital Capital Management AU, the price of bitcoins will be closely linked to developments in the banking sector. A shake-up in the banking industry could demonstrate Bitcoin’s ability to store value, providing an alternative investment option free from government and central bank scrutiny, he said. But the downside is dwindling liquidity and regulations that stifle access to banks for the crypto sector, he added. Lack of trust in the traditional banking system is seen as the main driver behind the Bitcoin surge in March, which saw the collapse of three US banks and the takeover of Credit Suisse in Switzerland, according to the survey. Bitcoin was found to be negatively correlated with the failure of traditional financial institutions. As banks have collapsed, Bitcoin adoption is growing among institutions and retail investors, said Rishabh Gupta, director of crypto incubator and advisory firm TDeFi, who predicted Bitcoin would hit 75,000 USD in 2023. Pension funds have started allocating 2-3% of capital to Bitcoin and other digital assets. After the 2024 halving, Bitcoin’s supply will become more scarce, which will have a positive impact on the price, Gupta said. Most survey respondents are optimistic about Bitcoin’s current trend, with 52% saying it’s a good time to buy, 32% saying it’s a good time to hold, and 16% seeing an opportunity to sell. However, 72% of respondents said the collapse of crypto-friendly banks in the US may hamper cryptocurrency adoption as US digital asset firms struggle to find banking partners. The Finders survey predicts Bitcoin price to reach $99,781 by 2025 and $297,848 by 2030, 29% and 58% higher than the January 2023 survey. BTC will receive enough capital inflows from institutional investors following the fall in interest rates. At the same time, [the market] the capitalization of BTC is still very low [and] new money will easily drive the price up. said Ilya Volkov, CEO of cryptocurrency exchange and lender YouHodler. The recent slowdown in economic indicators in the United States has added to optimism that the Federal Reserve may soon end its one-year cycle of raising interest rates to curb inflation. CME Group analysts expect an 84.6% chance of a 25 basis point interest rate hike in May, followed by a rate cut by the end of 2023. However, the Atlanta Federal Reserve Chairman Raphael Bostic said Tuesday it was still too early. consider rate cuts given the stubbornly high rate of inflation, according to CNBC on Tuesday. The inflation rate is around 5%, against a target of 2% from the Fed.

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