What happens to bitcoin? What perspectives for 2023


What happens to bitcoin?

Two separate reports distributed in the American magazine Forbes shed light on the purposes behind the extraordinary breakdown of the most well-known computerized money "Bitcoin" last year and checked on the possibilities for the advanced cash market in 2023 and what financial backers ought to do

Writer Rashi Maheshwari's first report said Bitcoin currency has experienced a major meltdown over the past year, which has left crypto investors with great disappointment and uncertainty about the future. of their investments in this regard.

The report states that Bitcoin (the most famous digital currency) has been under enormous pressure which has led to its decline, so that the value of one of them is now around 17,000 dollars, from where it was in November 2021, when it reached $69,000, to take a downward trajectory since then. With him, he expected it to recover again.

What happens to bitcoin?

The writer said that 2022 has been a tumultuous year for bitcoin, which has been unable to cope with market pressure, especially after the collapse of the cryptocurrency exchange FTX as it no longer gave genuine indications of recuperation, notwithstanding the high bitcoin value Interest and expansion fears likewise assumed an immense part in the crypto cost crash.

She added that bitcoin - after the resounding fall in November 2022 - has fluctuated between $16,000 and $18,000, registering a drop of around 80% since the significant rise it witnessed in November 2021.

The author said that experts believe bitcoin is poised to reach the bottom of the drop zone soon, while others believe it will continue on the path for a longer period.

What is the reason for Bitcoin's decline in 2022?

The Author turned out a portion of the purposes behind the decrease in Bitcoin cost throughout the last year, including:

  • Russian-Ukrainian War.
  • Higher inflationary fears, which means more spending on the cost of living.
  • Vulnerability because of higher financing costs in the US and UK.
  • Cryptocurrency trading is criminalized in China.
  • The new tax system in India.
  • The collapse of the Terra Luna coin.
  • The collapse of FTX, the largest cryptocurrency exchange in the world.

The writer explained that these “unexpected and unfortunate” events led to severe selling, as panic dominated the markets, in addition to also playing a major role in disrupting the mood of the investor.

What does the bitcoin collapse mean for crypto investors?

The writer said bitcoin is considered one of many investors' favorite cryptocurrencies because it has been promoted as an alternative to gold, which means it can prove itself as protection. against inflation, and it was also able to be widely accepted as an acceptable mode of payment, just like foreign currencies.

And the author said that digital assets are characterized by their highly volatile nature, indicating that this means that the price of Bitcoin depends only on investor speculation.

Given this volatile nature – says the author – market experts are confident that bitcoin will recover and its prices will rise again at some point in the future.

Before investing in digital currencies what should I know?

The author has gone over a number of tips one should know before investing in Bitcoin and its siblings, including:

  • Do not invest all your savings, as it is enough to invest only 5-10% of your total portfolio in cryptocurrencies such as Bitcoin to be able to withstand the loss if it occurs.
  • Consider cryptocurrency a drawn-out venture, like other conventional resources.
  • Understand the volatile nature of Bitcoin, then make an investment decision.
  • Precisely research the best chance to trade bitcoin to boost returns.

Digital currencies, expectations for 2023

Forbes magazine has published another report on the crisis of digital currencies, in particular, Bitcoin.

The report says that what happened last year has not dampened investor sentiment towards Bitcoin, as many hope it will return to strong performance in 2023 and make up for its losses, while d others expect more collapse, so some say this currency will disappear forever.

The site reviewed many predictions for the price of bitcoin for the new year, and those expectations ranged from high optimism to extreme desperation.

The optimists

Tim Draper, a crypto investor, and proponent have long predicted that the Bitcoin price will hit $250,000 in mid-2023.

The report quotes Carol Alexander, a finance professor at the University of Sussex, who expects bitcoin's price to rise in the first half of 2023, reaching $50,000 by the end of the year, which many traders expect. consider the closest. happen.

Investor Alistair Milne predicted that the Bitcoin price would rise to $45,000 depending on what happens with inflation.

Cryptocurrency speculative stock investments CIO Eric Wall likewise anticipated that the cost of bitcoin would outperform $30,000.

The pessimists

Billionaire Mark Mobius, the founder of Mobius Capital Partners, predicted in early December that Bitcoin would fall further and hit a low of $10,000 in 2023, due to the US Federal Reserve's monetary policy tightening and high Bitcoin price.

Head of digital asset research at investment firm VanEck Matthew Siegel said the first quarter of 2023 will see bitcoin hit a price between $12,000 and $10,000, citing rising energy prices and a lawsuit filed by financial transaction company Ripple. be two central points in the proceeding with decline.

"More and more cryptocurrency companies and exchanges are finding that they don't have enough liquidity, leading to more bankruptcies and a collapse in investor confidence in the asset," he said. the Standard Chartered Digital consumer bank".

What Should Crypto Investors Do?

Even with such different expectations, what should crypto investors do? He replied that diversification is an option, but it does not provide the same benefits as in traditional investment markets and that diversification only changes the amount of volatility and changes in your portfolio, but when bitcoin is the least volatile asset you own, then you know it's going to be a bumpy ride no matter what.

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