Experts Predict Bitcoin's Bull Run is Nearing its End - Have We Hit the Bottom Yet?
Anthony Scaramucci, a former Wall Street banker and cryptocurrency investor, is investing in cryptocurrencies despite suffering significant financial losses. He is not alone either. Other bitcoin investors are also attempting to predict when the cryptocurrency's next bull run may take place following a turbulent 2022. In three years, according to Scaramucci, bitcoin will be worth $100,000. However, the year 2023 will be one of cryptocurrency market caution. But cryptocurrency investors are already optimistic about the upcoming one.
By 2022, the whole cryptocurrency market had lost over $1.4 trillion in value, and it was plagued by bankruptcy and liquidity issues, with the collapse of the FTX exchange serving as the industry's apex. The disease spread across the entire sector. By 2022, Bitcoin had lost two thirds of its value. But late this year, bitcoin and other risk assets, led by US equities, reversed course and started to increase slightly. The most well-known cryptocurrency, however, may have already touched its bottom and is unlikely to rise over its all-time high of little under $69,000, according to analysts contacted by CNBC.
Investors anticipate 2023 to be a cautious year before a possible bull run that might start in 2024. There may be potential for a fall, but we don't believe it will be significant. It's possible that it will fall to as little as $12k before rising again. Bitcoin is expected to trade in a range, with the low end between $15k and $20k and the high end between $25k and $30k, according to predictions. According to experts, some of the forced sales that had place in 2022 as a result of market crashes have ended. However, investors are waiting and keeping an eye on the macroeconomic environment as Bitcoin is not yet able to draw in new capital.
Given that bitcoin has been found to have a strong correlation with risky assets like equities, particularly the tech-heavy Nasdaq, 2024 should be a bright year for the cryptocurrency. Changes in Fed interest rates and other macroeconomic factors have an impact on these assets. The Fed aggressively raised interest rates last year in an effort to control inflation, which damaged risk assets like bitcoin. Bitcoin may benefit from a change in the US central bank's monetary policy. Since persistently rising inflation in the US is a relatively recent phenomenon, the situation is indeed extremely unpredictable.
Usually, after reaching an all-time high, bitcoin has a significant correction. After that, there follows a poor year, then a year of mild recovery. A "halving" of bitcoin follows. The market supply of bitcoin is essentially slowed by the halving, which takes place every four years. Then, the payouts to miners are divided in halves. In 2024, there will be another halving. Experts predict that 2023 will mark bitcoin's "recovery year" and that it will trade at $50,000 to $100,000 in two to three years.