Experts Predict Bitcoin Could See a 1400% Increase or 70% Decrease by 2023

In 2022, the crypto market experienced a significant downturn. Over $1.3 trillion was lost in value, and the price of bitcoin, the most prominent digital currency, dropped by more than 60%.

‍
Investors were surprised by the sudden failure of several projects in the cryptocurrency industry, such as terra USD and FTX, as well as the deteriorating economic conditions. Those who had predicted the value of Bitcoin in the last year were proven wrong.

‍
As we enter the year 2023, some market participants have made predictions about what could be a tumultuous year. They have taken a risk by making price forecasts.
Interest rates are increasing globally, and this is having a negative effect on investments such as stocks and bitcoin. People are also keeping a close eye on the FTX situation, which led to the apprehension of the company's creator, Sam Bankman-Fried, in the Bahamas.
CNBC has compiled a list of the most daring predictions for the price of bitcoin in 2023.

‍
Tim Draper, a strong supporter of Bitcoin, made a bold prediction that the cryptocurrency would reach a value of $250,000 by the end of 2022.
In November, the billionaire venture capitalist declared that his prediction of the coin reaching a quarter-of-a-million milestone would be delayed until mid-2023. Despite the fall of FTX, he remains confident that the coin will reach the milestone.

‍
According to Draper, women are responsible for the majority of retail spending, yet only a small fraction of bitcoin wallets are owned by women. He believes that this discrepancy is about to change. He shared this sentiment with CNBC via email. In order for Bitcoin to reach the desired level, it would need to experience an increase of 1,400%. Despite the current low prices and lack of trading activity, Draper believes that the market may have reached its lowest point.
He expressed his belief that the halvening in 2024 will have a beneficial outcome.

‍
Every four years, the halvening, or halving, of bitcoin rewards to miners takes place. This event is seen by some investors as a positive for the cryptocurrency's price, as it reduces the amount of supply. The next halving is expected to occur in 2024. Those who use power-hungry machines to authenticate transactions and create new Bitcoin tokens are feeling the pinch of the declining value of the cryptocurrency and the increasing cost of energy.

‍
These actors have been able to amass large amounts of digital currency, making them some of the most successful traders in the market. With miners selling off their holdings to cover their debts, this should reduce the amount of selling pressure on bitcoin. Vijay Ayyar, vice president of corporate development at crypto exchange Luno, stated that this is a positive indication for bitcoin historically. Ayyar informed CNBC that in the past, when the market was down, capitulation from miners typically indicated a major bottom. The cost of production was higher than the value of Bitcoin, so miners had to either turn off their machines or sell more Bitcoin to keep their operations running. When the market is able to take in the selling pressure from miners, it is likely that we are in a period of stabilization.
Some investors fear that the worst is yet to come.

‍
Standard Chartered recently released a research note in which they suggested that bitcoin could potentially drop to as low as $5,000. This would be a significant decrease of 70% from its current value. The prediction was included in the bank's list of "surprises" that are not being taken into account by the markets.
In Standard Chartered's worst-case 2023 scenario, yields have dropped significantly in tandem with technology stocks. Eric Robertsen, the bank's global head of research, noted that even though the Bitcoin sell-off has slowed, the harm has already been done.

‍
An increasing number of crypto businesses and exchanges are facing a lack of liquidity, resulting in more bankruptcies and a decrease in investor trust in digital assets, according to the source. Robertsen suggested that there is a chance that the scenario could take place in the upcoming year, which is not in line with the market's expectations or the company's own predictions.

‍
Mark Mobius, an experienced investor, had a fairly successful year in 2022 with his price predictions. In May, he predicted that the price of Bitcoin would fall to $20,000 when it was trading above $28,000. He predicted that bitcoin would drop to $10,000 in 2022, but that did not come to fruition. Nevertheless, Mobius declared to CNBC that he is still expecting the cryptocurrency to reach that price point in 2023.

‍
The investor, who achieved success at Franklin Templeton Investments, informed CNBC that his pessimistic outlook for bitcoin was due to the increasing interest rates and stricter monetary policy from the U.S. Federal Reserve. Mobius stated in an email that when interest rates are high, the incentive to hold or purchase Bitcoin or other cryptocurrencies is reduced since there is no interest earned from simply possessing the coin.

‍
Carol Alexander, a finance professor at Sussex University, was close to accurate in her forecast that bitcoin would drop to $10,000 by 2022.
At present, she believes that cryptocurrency could be in for a rise in value, but not for the reasons one might anticipate.
Alexander believes that if more dominoes fall as a result of the FTX fallout, it could be the catalyst that drives the price of bitcoin to $30,000 in the first quarter and then up to $50,000 by the third or fourth quarter.

‍
She informed CNBC that in 2023, there will be a controlled bull market, not a bubble, so the price won't be excessively high like it was in the past.
It appears that the prices will remain steady for a couple of months, with some fluctuations within a certain range, and there is a possibility of a few brief drops.
Alexander believes that, as trading activity decreases due to traders being anxious, large holders, referred to as "whales," will likely enter the market to support it. Data from fintech company River Financial reveals that the wealthiest 97 bitcoin wallet addresses possess 14.15% of the total supply.

‍
Certain investors have abandoned their attempts to forecast the cost of bitcoin. For Antoni Trenchev, the Chief Executive Officer of the crypto lending platform Nexo, the recent events are a humbling experience. At the beginning of 2022, Bitcoin was on a trajectory of growth due to increasing institutional adoption. However, certain factors have caused disruption to this progress. Kosta Trenchev, at one point, forecasted that bitcoin would reach a high of $100,000 by the start of 2023. However, he has since stopped attempting to predict the value of the cryptocurrency.

‍
According to Laith Khalaf, a financial analyst at AJ Bell, it is impossible to accurately predict the future price of bitcoin.
He informed CNBC's "Squawk Box Europe" that it wouldn't be a shock if we were discussing the market at $5,000 or $50,000 this time next year, as sentiment is a major factor in the market.