The plunge in the price of Bitcoin has made many people pessimistic about the future of the world’s largest cryptocurrency. According to a report entitled “The financial-market surprises of 2023” by Standard Chartered, Bitcoin could fall to $5,000, down 70% from its current price of $17,000.
“Yields plunge along with technology shares, and while the Bitcoin sell-off decelerates, the damage has been done. More and more crypto firms and exchanges find themselves with insufficient liquidity, leading to further bankruptcies and a collapse in investor confidence in digital assets”, said Eric Robertsen, Global Head of Research at Standard Chartered Bank. Somewhat extreme scenarios could occur next year and “fall materially outside of the market consensus or our own baseline views”, he added.
Bitcoin has dropped by more than 60% in 2022 after a series of collapses of projects and companies. The latest is the crypto exchange FTX, which filed for bankruptcy in November. In the short term, Bitcoin can continue to trade around the threshold of $16,000 – 18,000; however, the crypto market is getting worse and Bitcoin is very vulnerable right now, which could plunge at any time.
Crypto trader and analyst Filbfilb thinks the $6,500 mark is a “worst-case scenario” for Bitcoin. Meanwhile, some other opinions suggest that Bitcoin could drop to $10,000. Cryptocurrency is facing a crisis of confidence after popular crypto exchange FTX filed for bankruptcy so in the short term, Bitcoin and other cryptocurrencies can hardly recover and regain the lost glory.
Some pessimistic traders also think that Bitcoin could hit a new bottom. Hayden Hughes, CEO at Alpha Impact said Bitcoin price could drop below 13,000 USD. Analyst CanteringClark thinks that Bitcoin price could fall to $12,000. Investors are advised to stay out of the market until volatility is overcome.
Bitcoin price downtrend may continue while market sentiment dips. Many traders will probably sell to cut losses instead of holding Bitcoin and waiting for the price to rise. Co-founder of digital asset trading and research firm Reflexivity Research, William Clemente, also warned that it is still too early to say whether the Bitcoin price trend has changed. Before that, according to some experts, it is more likely that the Bitcoin price will move higher and towards the target of $22,000.
Crypto analyst Philip Swift believes that the price drop will end in early 2023 while famous crypto commentator Jim Messina suggests that Bitcoin may once again reach $60,000. Messina believes the financial system will be reshaped with the help of blockchain technology and digital assets.
Michael Saylor, an expert from MicroStrategy, believes that Bitcoin could hit $70,000 in the next four years. This expert even predicted that Bitcoin could skyrocket to $500,000 in the next decade if it matches the market capitalization of gold.
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