The last year of 2022 witnessed one of the harshest crypto winters in the history of crypto markets. The world’s largest crypto-currency has corrected by nearly 60% in the last year and many analysts believe that the bottom has not yet been reached.
Some market experts believe that 2023 would be a fairly volatile year for crypto investors and for bitcoin (BTC) as well. However, the general market opinion remains very broad and divided. The global macroeconomic outlook looks absolutely uncertain and interest rates are rising around the world. Although the Fed has slowed the pace of rate hikes, it has still confirmed further hikes this year.
As a result, risky assets like stocks and crypto will continue to remain under selling pressure. Let’s take a look at the bitcoin price prediction from market veterans and other financial institutions.
Tim Draper and his expectations for bitcoin (BTC) in 2023
The Bull of bitcoin Tim Draper has set a price target of $250,000 for the crypto-currency by the end of the year. This represents ~15x from current price levels. This is also one of the most optimistic predictions for the price of BTC and may seem unrealistic to many.
Interestingly, Tim Draper remains optimistic about his BTC price predictions despite recent events and the collapse of the FTX crypto currency exchange. In an email to CNBC, Draper wrote:
“My hypothesis is that since women control 80% of retail spending, and only 1 in 7 bitcoin wallets are currently held by women, the dam is about to break.”
Tim Draper also added that another reason for his bullish optimism is the bitcoin split event that will occur in mid-2024. This event occurs every four years and results in a reduction in the supply of bitcoins. This development is considered bullish by market participants.
However, over the past year, as the price of BTC has collapsed, bitcoin miners have been under heavy selling pressure to meet operational costs. “If the market reaches a point where it absorbs enough of this selling pressure from miners, we can assume that we are seeing a trough period“, said Vijay Ayyar, vice president of corporate development at crypto currency exchange Luno.
Banking giant Standard Chartered has predicted an extreme downside scenario for the price of bitcoin. According to Standard Chartered, the price of BTC could go as low as $5,000. If this is the case, it would mean a further 70% correction from current levels. The banking giant also expects more news of bankruptcies in the crypto space. Eric Robertsen, the bank’s global head of research, said:
“Yields plunge along with tech stocks” in Standard Chartered’s 2023 nightmare scenario, “and even if the bitcoin sell-off slows down, the damage is done. More and more crypto exchanges and companies are left with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets.”
Mark Mobius and VanEck
Market investor Mark Mobius had some success with his BTC price predictions last year. In May 2022, Mobius stated that the price of BTC could still fall to $20,000, when it was trading above $28,000.
Mark Mobius still predicted a drop in the price of BTC to $10,000 last year, but that didn’t happen. But in 2023, he is sticking to his prediction. But Mark Mobius isn’t the only one predicting a drop in the price of BTC to $10,000.
Bitcoin ETF issuer VanEck Investments recently predicted that Bitcoin may fall to $10,000-12,000 by the first quarter of 2023. But VanEck expects bitcoin to rise again to $30K by the second half of the year. “Falling inflation, easing energy concerns, a possible truce in Ukraine and a turnaround in M2 supply will fuel the start of a new bull market“. adds.