Looking ahead to 2022, it was a difficult year for cryptocurrency. About $1.3 trillion was wiped off the market value. The price of Bitcoin, the world’s most popular digital coin, has fallen by more than 60%. When one thinks of investing in the cryptocurrency market, the first thing that comes to mind is Bitcoin because of its reputation and people believe that they can make significant returns.
However, things could get better for Bitcoin in 2022. The recent implosion of FTX, the exchange that once influenced the crypto industry, has taken its toll, and you may have heard about the collapse of crypto lender Voyager and TerraUSD. bankrupt.
Then, add in stock market price losses, interest rate hikes, and high inflation, all of which follow the rise in popularity of Bitcoin and other cryptocurrencies.
But what will the price of bitcoin be in 2023? Will it continue to fall?
Let’s find out below.
What Affects Bitcoin Price?
Bitcoin protocols also allow the creation of new bitcoins. Miners process the blocks of the transaction and when new Bitcoin is added to the market, it will affect the supply. However, you should know that the number of bitcoins is limited to 21 million, and once this number is reached, there will be no more production.
Supply and demand
The total number of Bitcoins traded on an exchange is a small percentage of the total supply in circulation. Most Bitcoin savings cannot be bought. When popularity increases, this will raise prices and lower demand for the currency will lower its value.
Many corporations, investors and people started using Bitcoin as an online transaction, which made Bitcoin widely accepted and increased its value in the future.
Rules and regulations
Bitcoin and other currencies that define digital assets have seen a rapid rise in popularity. The security and exchange commission has classified cryptocurrency as a security and they have set rules or regulations regarding cryptocurrency.
If currency regulations are too repressive, prices will fall and if cryptocurrency is favorable, there will be more growth.
Everyone knows about the power of the media, which has the most notable effects on Bitcoin prices. The general public has gained a greater understanding of cryptocurrencies and Bitcoin, which has also attracted media attention.
When investors find out any new information from the media, they tell their friends or family and make decisions based on it. If there is positive news in the media, it will increase its price; otherwise, vice versa.
When you check out the cryptocurrency market, you will find that several well-known cryptocurrencies are accepted worldwide. There are several cryptocurrencies such as Ethereum or Tether.
The price of Bitcoin also depends on its market value, and if the market value of other currencies increases, the price of cryptocurrency will decrease and vice versa.
Will Bitcoin price continue to crash in 2023?
In the early days alone, there was chaos surrounding the collapse of FTX and expectations that the Bitcoin price would drop to $10,000 per coin. This affected the investment and most people did not invest their money in it. In the Mobius Statement (Mobius capital partner) he states that he will not invest his or his client’s money in Bitcoin.
Moreover, Matthew Siegel (VanEck head of digital assets) is looking for a similar price target. They predicted that the price of Bitcoin would fall between $10,000 and $12,000 per coin. He believed that the reason for this decline and the increase in electricity prices was due to cryptocurrency miners.
Bitcoin prices are still unpredictable
You have to remember that cryptocurrency is the most volatile asset you can find. Prices vary widely and not every forecaster has the same opinion. Therefore; The unpredictable nature of digital assets is said to stop their prices from falling.
If you ask if the price of Bitcoin will fall, it will be completely unpredictable, because everyone has their own theory. Moreover, it depends on the factors that will happen in the future.
The McClatchy newsroom and editorial staff were not involved in the creation of this content.