Bitcoin and other cryptocurrencies faced a disaster in December 2022, a month that showed low volatility and falling crypto market prices. Turmoil in the cryptocurrency market peaked in November when the $32 billion crypto exchange FTX filed for official bankruptcy protection.
Bitcoin started 2023 with a small gain but didn’t move much in the last week, gaining 1% the day before. It is currently trading at $16,724. During this time last year, Bitcoin was trading at $47,385, up 65% from now. According to data from CoinMarketCap, the price of Bitcoin in 2022 decreased by 76% from November 10, 2021 highs.
Ethereum has also increased over the past 24 hours. According to CoinGecko, the second largest digital asset is up 1.9% and is priced at $1,219. In November, it fell from a high of $1,600 to $1,100, and in December, it briefly topped $1,300 before pulling back. Like Bitcoin, ETH is down 75% from its November 2021 peak of $4,878.
BTC AND ETH Predictions For 2023
In 2022, the cryptocurrency showed its worst performance since 2018, but investors expect 2023 to see the return of the 2019 market.
Alkesh Shah, an analyst at Bank of America, said the recent decline in cryptocurrency prices and bankruptcies cast a shadow over the long-term future of blockchain technology and digital assets.
“We expect the digital asset ecosystem’s market value to trade in line with risk assets over the course of 2023, but see the potential for token price divergence as investors shift focus from speculative trading to the development and adoption of blockchains and applications powered by tokens with utility and cash flows.”
He said the digital asset ecosystem is still a developing industry and will continue to grow in 2023.
“Bitcoin is 14 years old, but dozens of blockchains and hundreds of applications have emerged that are less than 3 years old and remain in version 1.0,” Shah says.
VanEck’s head of crypto research, Matthew Siegel, has predicted that the price of BTC will rise to $30,000 by the second half of 2023. But he cautions that it could remain at $10,000 to $20,000 in the first quarter.
According to U.K. financial services company Standard Chartered, Bitcoin prices could fall another 70% to around $5,000 in 2023.
The prediction of Carol Alexander, a professor of finance at the University of Sussex, is of great interest because she predicted that Bitcoin would fall to $10,000 by 2022. She expects that the price of Bitcoin will reach $30,000 in the first quarter and $50,000 in the third or fourth quarter of 2023.
Erik Voorhees, founder, and CEO of cryptocurrency exchange ShapeShift, predicted BTC to reach $40,000 by the summer in an interview with Bankless on January 2.
On the other hand, the price of Ethereum is very volatile and can fluctuate by dozens of percent in an instant. By the end of 2023, the price of Ethereum will be between $1,013-1,490, according to the analytical forecast by Anton Kharitonov. You can make money year-round from volatility.
Moreover, Ethereum is expected to gain more regulatory transparency in 2023, which will encourage more people to invest in the project.