Bitcoin has been on a rollercoaster ride since the start of 2021, gaining more than 45% in value since the start of the year. As of January 29, the price of Bitcoin sat at $23,860, a significant increase from its January 1 value of $16,499. Although this surge may suggest that Bitcoin is on the road to recovery, there are still multiple factors that may be hindering its progress.
As of today, Bitcoin is priced at $23,052.37, with a daily trading volume of $22 billion. It holds the top spot on CoinMarketCap with a market cap of around $444 billion and has dropped by 0.33% over the past 24 hours.[0] Analysts are divided in their opinions on whether Bitcoin has bottomed out and will begin recovering, with some predicting that the asset may hit anywhere from $50,000 to $1 million in the next decade.[1]
ARK Investment Management has estimated that Bitcoin could run to $1 million in the next decade in its 2023 Big Ideas report.[2] Similarly, Anthony Scaramucci of SkyBridge Capital has predicted that Bitcoin may hit between $50,000 and $100,000 in two to three years, believing that widespread adoption could be the catalyst for such growth.[3]
While the overall market sentiment cannot be called bullish just yet, some analysts believe that Bitcoin’s recent price and on-chain data suggests that the asset may be in the later stages of a bear market.[4] Mike McGlone of Bloomberg’s senior commodity experts also predicted that Bitcoin could hit $100,000 sometime around the next halving or by 2025.[5]
In the short term, Bitcoin appears to be recovering from the uncertainty of macroeconomic factors, but the long-term projection remains shaky. Analysts are waiting for a year after the 2022 bear market rally to pass in order to be sure that the bearish phase is now over.[6] Ultimately, only time will tell whether or not this upwards trend will continue, and whether it will break its previous all-time high of around $69,000.[7]
0. “Bitcoin Price Prediction as BTC Trading Volume Surges to $40 Billion – Here’s Where BTC is Headed Next” Cryptonews, 4 Feb. 2023, https://cryptonews.com/news/bitcoin-price-prediction-as-btc-trading-volume-surges-40-billion-heres-where-btc-headed-next.htm
1. “Bitcoin Could Be in the Later Stages of the Bear Market, On-Chain Data Suggests” Yahoo! Voices, 1 Feb. 2023, https://www.yahoo.com/now/bitcoin-could-later-stages-bear-083711018.html
2. “Cathie Wood’s Ark Invest says bitcoin could hit $1.5 million by 2030, doubling down on its bullishness for the” Business Insider India, 1 Feb. 2023, https://www.businessinsider.in/investment/news/cathie-woods-ark-invest-says-bitcoin-could-hit-1-5-million-by-2030-doubling-down-on-its-bullishness-for-the-worlds-largest-cryptocurrency/articleshow/97534032.cms
3. “Bitcoin Extends New Year Rally, Crosses $24,000 Briefly” Coinspeaker, 3 Feb. 2023, https://www.coinspeaker.com/bitcoin-new-year-rally-24000/
4. “‘Crypto summer’ likely to start in Q2 2023, Morgan Creek Capital CEO says” Cointelegraph, 3 Feb. 2023, https://cointelegraph.com/news/crypto-summer-likely-to-start-in-q2-2023-morgan-creek-capital-ceo-says
5. “Bitcoin starts new geometric cycle; $150k within reach?” Finbold – Finance in Bold, 31 Jan. 2023, https://finbold.com/bitcoin-starts-new-geometric-cycle-150k-within-reach
6. “Why Bitcoin is still in a bear market and what this means for BTC price?” FXStreet, 5 Feb. 2023, https://www.fxstreet.com/cryptocurrencies/news/why-bitcoin-still-in-a-bear-market-and-what-this-means-for-btc-price-202302050837
7. “How Did Bitcoin’s Price Change During the New Year’s Period?” FinSMEs, 31 Jan. 2023, https://www.finsmes.com/2023/01/how-did-bitcoins-price-change-during-the-new-years-period.html