The recent sell-off caused by the FTX scandal has caused the price of bitcoin to gradually recover, but projecting a bottom is like throwing darts at a board while wearing blinders. While many industry professionals have begun projecting the price of BTC for 2023, it’s important to keep in mind that these projections come at a time when many Bitcoin investors remain optimistic about a substantial recovery in 2023.
The worst of the current cycle, according to industry experts, has already passed by September 2022. Experts at Standard Chartered predict that by 2023, Bitcoin may only be worth $5,000. Eric Robertsen, the bank’s global head of research, made even more startling forecasts about the future of bitcoin, predicting that it may plummet by nearly 70%.
According to Bloomberg, the analysts also expressed concern that more cryptocurrency businesses may file for bankruptcy, which may further erode investor confidence in the industry. Dan Morehead, CEO of Pantera Capital, claims that the dynamics of supply and demand for digital assets may change as a result of the upcoming acceptance of cryptocurrencies.
“Investor confidence in cryptocurrency assets could be lost if more exchanges and crypto companies have cash flow problems.”
Will BTC Reach $18,000?
The Bitcoin industry had a terrible month in November. On November 11, FTX declared bankruptcy, which sent shockwaves through the sector. Bitcoin’s price went from over $20,000 to under $16,000 in a matter of days, and it is currently gradually increasing. Ethereum also witnessed a similar collapse as the drama progressed, falling from over $1,600 to around $1,200.
In the period after this article was written, Bitcoin has crossed the crucial $17,000 barrier and may possibly move toward the $17,600 resistance level. The $18,000 scenario will be in play once that is broken.