Bitcoin is currently experiencing a good phase again. After the price had to accept a stronger drop a week ago, the cryptocurrency rose sharply over the last 7 days (+13%). Although we could still face a crash, Bitcoin price should rise sharply in the medium term. What are the reasons for such an increase? Will Bitcoin reach 50K again?
When will Bitcoin reach 50K again?
The Bitcoin price surpassed an important mark again a few days ago at $25,000. This puts the cryptocurrency back as strong as it was last time in the second quarter of 2022. That could be halfway to a new high in 2023. The $50,000 is a price target that is realistic for this year.
We could see this price again in the middle of the year. The end of the second quarter or the beginning of the third quarter of 2023 seem realistic. Even if we see another crash, a spike to that level would still be possible this summer.
3 Reasons pushing Bitcoin to reach 50K this year?
1. The year 2019 might be repeating
In order to be able to predict the development of prices in the crypto market in the medium and long term, we can always make historical comparisons. This comparison makes sense if we go back 4 years and look at 2019.
In 2019 we saw a very similar price action to this year. Overall, the Bitcoin price rose from $3,500 to $10,500. If we take a factor of 3 in price action for this year, we arrive at around $50,000.
2. Stable FIAT monetary policy
It can be assumed that the percentage increases in the Bitcoin price will decrease in repeated cycles. But even then, $50,000 could be possible, assuming we have a severely undervalued bitcoin at the moment.
This could be the case as in 2022 the value of bitcoin has fallen compared to FIAT currencies such as the US dollar and euro as interest rates have been sharply increased by central banks. For now, that policy appears to be stabilizing and hikes should not be anytime soon. That should boost the value of bitcoin.
3. More Crypto trust after Severe Regulation
In 2022, many bankruptcies have hurt the crypto market. Celsius, Terra or FTX – all these bankruptcies also harmed Bitcoin. At the moment, the SEC is primarily taking care of the Altcoins. Stronger regulation of altcoins could follow.
In this case, the winner would be Bitcoin. Better regulation would increase confidence in bitcoin and could see its price rise more than altcoins. The BTC dominance should increase. So a price of $50,000 would be easier.
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Source: https://cryptoticker.io/en/3-reasons-why-bitcoin-reaching-50000-in-2023-is-possible/