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The bitcoin price has crashed by around 70% since hitting an all-time high of almost $70,000 per bitcoin late last year while ethereum has seen a similar decline. Ripple’s XRP
Now, as leaks reveal crypto CEOs are braced for a $65 billion earthquake, a fund manager at investment giant VanEck has predicted the bitcoin price could rally to around $30,000 per bitcoin next year—potentially doubling bitcoin’s current market capitalization to $600 billion—and forecasted ethereum and Ripple’s XRP developments.
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The bitcoin price could almost double next year, according to one bullish bitcoin price prediction … [+]
“Bitcoin will test $10,000-$12,000 in [the first quarter of 2023] amid a wave of miner bankruptcies, which will mark the low point of the crypto winter,” wrote Matthew Sigel, head of digital assets research at VanEck, while others fear the bitcoin price could crash to even lower levels next year.
However, the bitcoin price is then predicted to surge to back as “lower inflation, easing energy concerns, a possible truce in Ukraine, and a turnaround in M2 supply” will kick start a fresh bull market.
“Should our recession expectations materialize, the Federal Reserve would likely pause raising rates amidst softening inflation while money printing and government budget deficits continue,” Sigel wrote. “Merely a lack of bad crypto-specific news, under the above scenario, could cause the price of bitcoin to climb a wall of worry back to $30,000 again.”
Others have echoed Sigel’s bitcoin price prediction but fear the Fed, which has embarked on a harsh program of interest rate hikes this year to counter soaring inflation, could overshoot its target, forecasting a situation reaction to the 2008 financial crisis.
“The probability of a recession is high,” crypto trader Thomas Kralow said in emailed comments.
“People lose their jobs, the Fed pivots too late and we will see the same situation that played out back in 2008. When the Fed pivoted, there was a relief rally for S&P 500, but as the interest rates finally started going down, the market crashed another 40%. It only bottomed when the Fed funds rate was basically at zero. This doesn’t bode well for bitcoin in 2023 and we could potentially see its price fall to $10,000 or even lower next year.”
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The bitcoin price has crashed over the last year but some think a 2023 rally could be on the cards … [+]
Elsewhere, Sigel’s 2023 bitcoin price prediction includes Ripple losing the lawsuit brought against its XRP by the SEC and ethereum
The price of Ripple’s XRP has climbed this year after the long-running SEC lawsuit has dragged on. Ripple was sued by SEC for allegedly misleading XRP investors in early 2021 but expectations have risen recently that Ripple will come out on top.
Sigel pointed to the SEC’s victory over blockchain-based publishing company LBRY in November as evidence the judge will side with the regulator.
“With this case as precedent, we have lowered our probability of a Ripple victory materially,” Sigel wrote.
Ethereum, after failing to meaningfully rally on the back of its transition from bitcoin’s proof-of-work to the more energy efficient proof-of-stake, could see an increase in confidence in 2023 if it enables withdrawals.
“Withdrawals have not been enabled, potentially hindering adoption,” added Sigel. “Enabling Beacon Chain withdrawals would give stakers more confidence to commit capital to the protocol.”