VanEck crypto research head made prediction for Bitcoin price for the next year
Bitcoin price is expected to see a recovery after a fall, worse than the current price. Investment firm VanEck manager shared the predictions for the crypto industry in the upcoming year. In the blogpost, there were takes on different subjects—BTC price fall and recovery took the top spot. He noted multiple reasons for that to happen and expects the price to go up to 30K USD by the second half of 2023.
Bitcoin Will Trade at Around 10K
VanEck published a blog on 13th December 2022, in which Head of Digital Assets Research, Matthew Siegel made eleven predictions for crypto. This included Bitcoin price, increase in value of on-chain assets, Ripple vs SEC lawsuit, Ethereum rolling out withdrawal with Beacon Chain and few others.
Siegel noted that Bitcoin is likely to test its low of 10K to 12K USD in the first quarter of 2023. This was to get majorly affected given the beleaguered situation from which the crypto mining sector is going through. Along with Bitcoin mining, the broader crypto mining space struggled during the whole year. Many mining firms were reported to be facing liquidity crunch and booked losses.
The operational costs went high given the rising energy prices while profitability decreased due to Bitcoin price drop. Siegel said many crypto miners will either face restructure or merge. A potential loss of Ripple against the US SEC was also cited as a catalyst to affect mining. All these are expected to bring BTC down to 10K to 12K in the initial months of the upcoming year.
Major Cryptocurrency Will Bounce Back
Further Siegel explained the broader crypto market remained under pressure throughout the year. The brutal bear market stayed across the industry which led cryptocurrencies tumble and many companies filing for bankruptcy. Such instances resulted in poor sentiment for the market and the assets were cited as risky investments.
Since cryptocurrencies are sensitive to interest rate hikes, the prices tumbled every time the Fed increased rates. Such moves come as a political response in order to control the growing inflation by putting a cap over energy prices, sanctions and facilitating the ‘energy transition’.
Getting over with the aforementioned complications, with war in Ukraine coming to an end and the Fed stopping increasing the interest rates given the softening inflation, things would get better. Mining sector will benefit and this will end up raising the crypto asset prices.
In addition to ease in mining, Bitcoin would be acting as a ‘store of value’ and play as a hedge against M2 inflation, for developed countries. While for developing countries, it would be used for remittances and as an alternate to the US dollar. If everything gets in favor and no bad news for crypto then Bitcoin is then expected to reach up to 30K USD in 2023.
Source: https://www.thecoinrepublic.com/2022/12/16/bitcoin-price-will-reach-30k-usd-in-2023-vaneck/