The world’s largest crypto-currency, bitcoin (BTC), saw a strong recovery this weekend as its price surpassed $21,000. Currently, BTC is trading at a price of $21,169 and its market capitalization is $407 billion.
This is the twelfth consecutive day of gains for BTC, which is its longest winning streak in over two years. With this recent move, bitcoin has also extended its weekly gains to more than 20%.
This recent move has given investors hope as the Bitcoin network prepares for its next split in half in mid-2024. Based on historical trends, bitcoin typically posts strong gains a year before the split in half.
BTC’s price could seriously change as Bitcoin’s halving approaches
According to the counter, the bitcoin halving is exactly 435 days away and is expected to take place on March 27, 2024. Thus, as bitcoin’s halving approaches, analysts and observers are expecting positive effects on the price of BTC. The halving of bitcoin usually leads to a decrease in supply, as coins are taken out of circulation. On the other hand, the constant demand from investors is pushing the price of BTC higher.
Well, the recent move could mean that bitcoin has likely hit its bottom and could be ready for the upward journey. “FOMO is likely to play a role in how the market moves from here on out,” wrote Noelle Acheson in her “Crypto Is Macro Now” newsletter.
Will 2023 see a new Bull Run for bitcoin?
Last year, Bitcoin and the crypto market as a whole suffered a brutal correction of over 60%. The recent rally in bitcoin’s price has given investors a new wave of hope.
However, some market analysts believe that 2023 could also be a difficult year given the tricky macroeconomic situation and rising interest rates. This would continue to put pressure on Wall Street and, in turn, the broader crypto market.
While experts believe that BTC may have bottomed out, it is unlikely to fall back to its all-time high of $69,000. Speaking to CNBC, Bill Tai, a venture capitalist and crypto veteran said:
“I think there’s still some downside, but I don’t think there will be much. “It’s possible that [le bitcoin] has bottomed out,” adding that it could go as low as $12,000 before rising again.
Meltem Demirors, chief strategy officer at CoinShares, also thinks bitcoin should stay in a range between $15,000 and $20,000. At the higher end, it could test the range between $25,000 and $30,000. Demirors stated:
“I don’t think there’s a lot of forced sales left, which is optimistic. But again, I think the upside is pretty limited, because we’re not seeing a lot of new inflows either.”
Anthony Scaramucci, founder of SkyBridge Capital believes 2023 would be a “year of recovery” for bitcoin and predicts that BTC could hit $50,000 to $100,000 in two-three years. “You’re a risk taker, but you also believe in adoption [du bitcoin]. So if the adoption is good, and I think we will, this could easily become a fifty to one hundred thousand dollar asset over the next two to three years” said Mr. Scaramucci.