As has been the trend over the years, different people have held dissenting views about the future of the world’s leading digital asset. And there is evidence supporting both angles.
Perhaps one of the questions in the Bitcoin community is whether investing in Bitcoin is the best decision to take now. Meanwhile, other erstwhile Bitcoin neutralists who would follow stocks or play at the newest casino online in Australia might be considering investing in Bitcoin in 2023.
In this article, we address some of the latest trends in the Bitcoin market toward revealing the best time to purchase the asset. You’ll also identify some of the risks around purchasing Bitcoin. By the end, you’ll see why we consider Bitcoin an excellent long-term investment over the next 36 months. We also show why we think Bitcoin is bullish overall and why we expect its price to increase in the long term.
How Much Is Bitcoin Today?
As of this writing, Bitcoin is trading at $16,555.78 (December 31, 2022). It’s running on an 0.22% drop over the last 24 hours. Meanwhile, the digital asset has a market capitalization of approximately $319 billion and a fully diluted market capitalization of approximately $348 billion. There are about 19,247,879,381 BTC in circulation.
Is It Smart to Invest in Bitcoin Now?
Since its all-time high of $68,789 in November 2022, Bitcoin has shed over three-quarters of its worth. Ethereum, the other top asset in the digital asset niche – has also lost value at about the same rate as BTC, from its 2021 all-time high of $4,891. Analysts say these price dips come behind broader selloffs in other industries like bonds, real estate, and equities.
Bitcoin’s detour southwards started at the end of 2021. Some researchers partly blame central banks for this sustained dip. Central banks began raising interest rates post-COVID-19 to cut demand in economies suffering from steeping inflation. Despite the negative consequences of increased interest rates from the Feds, chances are high that the US regulatory body might still hike rates further. Home and fuel oil prices keep rising in the United States.
Meanwhile, if Bitcoin’s price keeps dipping further, some analysts predict it could fall to $8,000. Considering the risks of economic recession in the United States and most other Western nations and a raging energy crisis in most of Europe, it’s apparent that Bitcoin doesn’t have the brightest of prospects.
Arguments Predicting a BTC Price Surge in 2023
Bitcoin’s bullish trend is in step with a historical four-year market cycle. This four-year cyclic trend includes a purchase, an uptrend, selling, and then a downtrend. The cycle predicts that we should see accumulation as part of the 2023 BTC experiences. However, some market analysts think this anticipated purchase streak might not begin until 2024.
However, leading market analysts like Kevin Svenson think we could see a bull market start from April, coinciding with when an 80-week bear market will close. Moreover, Bitcoin’s deflationary nature, as seen in ‘halving events,’ historically increases its price over time. During halving, miners’ rewards are halved, and the next one is scheduled for April 2024.
However, you want to be wary of extravagant publicity. The market is well aware of the ways of greed. Similar predictions that Ether will multiply its value by a factor of 10 in 2023 should also be carefully considered.
Case for BTC Price Dip to Below $4,000
On the other end of the divide, experts predict there won’t be a surge in the price of BTC in 2023. As Gareth Soloway, a Pro Trader and President of IntheMoneyStocks puts it; Bitcoin could fall to $3,500 next year.
However, any price dip in BTC below $12,000 might make it unprofitable for miners to keep running the ecosystem. Consequently, they might stop processing transactions altogether. If anything, stopping transactions could cripple the digital assets industry.
Bitcoin Needed in Some “Future World Market Crash”
Perhaps one of the most intriguing propositions about a future need for BTC – and a bullish market – concerns a predicted global market crash. Here’s the gist of it.
BTC maximalists believe existing systems will crash and the US Dollar will benefit Bitcoin in the larger decentralized community. They assert that global financial systems will crash and create the need for a new financial system. To these Bitcoin supporters, Bitcoin can bail the world out during such times.
Their proposition summarizes that a fall in global fiat will coincide with a rise in Bitcoin’s price. And with more BTC volatility, the chances of increased BTC prices are higher. They opine that Bitcoin and other assets in the decentralized community will fill in the void ‘if’ (though they say ‘when’) the world crashes.
Ethereum, against a backdrop of rising energy prices, launched The Merge in September. No doubt, skyrocketing energy prices will cause mining issues, so Ethereum launched its program and reduced its carbon footprint by 99.99%.
The Downsides of Hyperinflation for Bitcoin and Future Projections
While Bitcoin maximalists advance inflation as a positive window for the world’s leading cryptocurrency, they’re likely missing out on something.
Hyperinflation can only benefit BTC to an extent. A complete collapse of fiat will make USD assessments worthless. For instance, what would be the implication if Bitcoin costs $2,000 but can’t pay for coffee at lunch hour?
Volatility and hyperinflation could be a friend of digital assets like Bitcoin – but they have their limitations. Analysts and extremists will want to temper their wishes and expectations. Realising their dreams could mean a disaster for both Bitcoin and the US Dollar.
So, Should I Buy Bitcoin Now?
For a swift answer, ‘Maybe not.’ Macroeconomic indices on Bitcoin show it as bearish. If you’re looking in the short term, say two to four weeks, this might not be the best time to purchase the world’s leading digital asset.
Other Issues in the Crypto World
While addressing the prospects of Bitcoin prices in 2023, let’s address some other issues that have ravaged the crypto world in 2022. The year 2022 saw a series of regulations in the crypto world. If anything, increased regulation means there’s less uncertainty around digital asset markets for investors – the effect will be a bullish market. But overregulation could restrict innovation in the digital assets space. So, monitoring regulations in the digital asset community will be a useful exercise.
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