Macroeconomic Conditions Haunting Effects on Bitcoin Market
Uncontrollable macroeconomic conditions have already caused havoc in crypto markets, particularly in the Bitcoin market.
Thereafter, the unfortunate collapse of crypto industry giants such as Terra Luna and FTX also severely impacted Bitcoin’s price progression.
The impacts coming from these overpowering circumstances have reduced BTC value by 60% in 2022. Once an over $1.3 Trillion economy of Bitcoin has now been reduced to $324 Billion only.
Investors were in awe when they saw industry giants falling on their backs. They literally stopped making any over-exaggerated predictions with regard to Bitcoin or any particular asset in the industry.
Does 2023 Warrant Any Change?
Now 2023 has come and the general sentiment is that the year 2023 would remain the same i.e. extremely volatile as was in 2022.
Investors’ assumptions of high volatility in 2023 could possibly be true because global interest rates haven’t stopped moving up.
Hence, stock markets, including Bitcoin, would continue to consume the stimulus coming from macroeconomic conditions.
50:50 2023’s BTC Value Forecasts In 2023
Despite worse macroeconomic continuation, there were a few Bitcoin supporters who couldn’t prevent themselves from making overstated BTC predictions.
Amongst them were Tim Draper, Erik Voorhees, Professor Carol Alexander, and Mike McGlone.
However, there was yet another category that comprised people and corporate giants who also offered their understated Bitcoin predictions. This category included firstly the global bank of Standard Chartered and a vastly experienced investor, Mark Mobius.
Overstated BTC Predictions Vs. Understated
As per Tim Draper’s future outlook for Bitcoin, he expects the asset’s value to go over $250,000. This is exactly what he had intimated to CNBC. So far there hasn’t been any BTC price prediction that is as wild as Draper’s.
The second wild prediction relating to Bitcoin was of Bloomberg’s analyst, Mike McGlone.
According to McGlone, Bitcoin may happen to trade hands at a whooping price of $100,000 in the future. However, McGlone’s BTC prediction does not aim at coming true in 2023 instead it forecasts BTC’s value in 2025.
His prediction is based on the supply and demand factor of Bitcoin. McGlone claims that the limited supply of Bitcoin is destined to bring a huge impact on Bitcoin’s value in the future.
He believes that after 2025, Bitcoin is going to become a ‘rare asset’.
On the other hand, Professor Alexander and Erik Voorhees limit their BTC value predictions at $50,000 and $40,000 respectively. Both claims that Bitcoin could easily cross this price range in 2023.
Understated Predictions of Standard Chartered and Mark Mobius
According to Mark Mobius, a globally appreciated investor, the $10,000 range would be sufficient considering the macroeconomic conditions in 2023.
The current value of Bitcoin is over $16,000 and what Morbius is predicting is a value that reduces Bitcoin to more than 75%.
However, there was one more understated prediction which was sent off by a financial institution known as Standard Chartered.
Analysts at Standard Chartered have made an analysis of Bitcoin at the end of 2022. In their analysis, they have come to a finding that in 2023 Bitcoin’s value could possibly be reduced to $5,000.
It is just a prediction but the analysts have gone too far with it. They have made a very aggressive prediction that suggests that the crypto market will be heavily disposed of by cryptocurrency investors.
They will continue leaving the cryptocurrency market due to many reasons and Bitcoin will find itself at the very center of all of it.
With the situation worsening around cryptocurrencies, investors will continue withdrawing from the crypto market. This would continue forming a greater void within the crypto industry.
They have based their prediction on factors such as prevailing market conditions, economic crunch, bankruptcies in the digital industry, and liquidity crisis.
Bank’s analysts further that crypto investors have lost confidence and reinstatement of confidence seems impossible in a couple of years.